KHFC Issues KRW423.3 Billion in MBS

On May 6, KHFC issued mortgage-backed securities (MBS) to the value of KRW 423.3 billion using the mortgage claims of bogeumjari loans extended by 6 financial institutions, including Hana Bank, as the underlying assets.

This issue of MBS in May, the fourth 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 5.38%, 5.48%, 5.74%, 5.80%, 5.81% and 5.82% respectively, and the weighted average interest rate is 5.75%.

Following this latest 32th issue of MBS, the cumulative issuance of MBS by KHFC since its establishment now stands at a total of KRW12.7729 trillion.