KHFC Issues KRW386.4 Billion in MBS

On May 27, KHFC issues mortgage-backed securities (MBS) to the value of KRW386.4 billion using the mortgage claims of bogeumjari loans extended by 4 financial institutions, including Hana Bank, as the underlying assets.

This issue of MBS in May, the sixth 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 5.50%, 5.97%, 6.28%, 6.31%, 6.32%, 6.33% respectively, and the weighted average interest rate is 6.26%.

Following this latest 33th issue of MBS, the cumulative issuance of MBS by KHFC since its establishment now stands at a total of KRW13.1593 trillion.