KHFC receives Best Securitization Deal of 2010

The Korea Housing Finance Corporation (KHFC, CEO Joo-jae Lim) announced on February 18, 2011 that it received the Best Securitization Deal AAA Award 2010 from The Asset, an international finance magazine, for its covered bonds issued in July 2010. The award ceremony was held in Hong Kong on the same day.  

The recognition follows the 2010 Best Deal-South Korea award from The Asset in January 20, 2011. KHFC is also scheduled to receive the South Korea Deal of the Year award from Asiamoney on February 24, 2011. 

KHFC is the only entity legally allowed to issue statutory covered bonds in Korea. In July 15, 2010, it made a successful inaugural issue of US$500 million of covered bonds with a maturity of 5.5 years, the first of its kind in Asia. Since its issue, the covered bonds had the lowest market yield of all foreign currency bonds issued by Korean financial institutions, including public finance corporations.

In this regard, a KHFC official said, ″The award not only recognizes the bonds′ symbolic meaning as the first covered bonds in Asia but also the positive evaluation by overseas investors on the legal stability and soundness of collateral assets of Korea's covered bonds.″ He added, ″Through two or more regular issuance of covered bonds, KHFC will raise the marketability and reputation of KHFC′s covered bonds and develop it as a leading index bond of Korea. This will allow us to support banks′ to secure low-cost, long-term financing and to expand the supply of long-term, fixed-rate mortgage loans in the private sector.″