KHFC Issues KRW392.1 Billion in MBS

On March 27, KHFC issued mortgage-backed securities (MBS) to the value of KRW392.1 billion using the mortgage claims of bogeumjari loans extended by 7 financial institutions, including Hana Bank, as the underlying assets.

This issue of MBS in March, the third in this year, had a range of eight maturities, ranging from one year to 20 years. MBS with maturities of five years or more carry 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 5.44%, 5.75%, 5.86%, 5.90%, 5.92% and 5.94%, respectively, and the weighted average interest rate is 5.88%.

Following this latest 30th issue of MBS, the cumulative issuance of MBS by KHFC since its establishment now stands at a total of KRW11.9811 trillion.