HF diversifies its financing channels with the issuance of electronic short-term bonds

- HF becomes the first government agency in Korea to issue electronic short-term bonds (worth 110 billion won)

On November 18th, the Korea Housing Finance Corporation (HF, CEO Seo Jong-dae) announced its issuance of electronic short-term bonds worth 110 billion won—a first for a government agency in Korea. Compared to commercial paper (CP) issued to finance short-term capital, these electronic short-term bonds provide greater transaction transparency as their issuance and circulation procedures are electronically registered, thereby contributing to promoting the short-term financing market.

* Electronic short-term bonds are financial instruments issued and traded “electronically,” not in paper form, based on short-term capital with a maturity of less than a year.

In an attempt to hold bonds for the Bogeumjari loan, HF issued electronic short-term bonds worth 110 billion won (with a maturity of 88 days), in accordance with the Act on the Issuance and Trading of Electronic Short-Term Bonds, Etc. enacted on January 15th of this year. These were the first such bonds issued by a government agency in Korea.

“Having completed the first successful transaction of repurchase agreements (RP) with a maturity date between financial institutions in September 2007, we at HF have contributed greatly to promoting the inter-institutional RP market,” explained one HF official. “With the recent issuance of electronic short-term bonds, we have reaffirmed our leading position in financing operations for government agencies. We will continue our efforts to support and carry out the policy initiative of advancing the financial market.”