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This year's 1st SLBS totaling 415.0 billion won issued

  • Date 2006-05-11
  • Views 4,650

This year's 1st SLBS totaling 415.0 billion won issued


 On April 26, KHFC issued KRW 415.0 billion won in this year's first SLBS.


 There are eight maturities, from one year to 20 years.  A call option is attached to five SLBS types maturing over five years, which were underwritten by institutional investors, including 11 pension funds.  The interest rates for SLBS maturing in one, three, five, 10, and 20 years are 4.71%, 5.05%, 5.42%, 5.63%, and 5.82%, respectively, and the weighted average interest rate is 5.57%.


 Mid-term bonds maturing in five and seven years account for 41%, and long-term bonds maturing in over ten years represent 32.5%, satisfying institutional investors' demand for mid/long-term bonds.  Along with MBS, SLBS is positioned as the long-term investment vehicle with the highest credit rating.  Like MBS, it is also expected to facilitate the growth and development of the long-term bond market in Korea.