KHFC Issues KRW 359.8 Billion in 2nd MBS in 2007

 On April 24, KHFC issued KRW359.8 billion in this year's second MBS.  In this issuance, the mortgage claims of bogeumjari loans extended by five financial institutions, including Hana Bank, were used as underlying assets.

 The MBS issued in April has eight maturities, from one year to 20 years.  MBS with maturities of five years or more have call options as a safeguard against early repayment of the underlying bogeumjari loans.

 The interest rates for MBS maturing in one, three, five, 10, 15, and 20 years are 5.08%, 5.17%, 5.22%, 5.30%, 5.35%, and 5.39%, respectively, and the weighted average interest rate is 5.27%

 With the most recent 23rd issuance, cumulative issuance of MBS by KHFC since its founding totals KRW9.3378 trillion, including KRW708.4 billion from two issuances this year.  Through the issuance of MBS, KHFC continues to promote the growth and development of the mid-to-long-term bond market in Korea.