KHFC Issues First SLBS of The Year

 On May 5, KHFC issued KRW532.7 billion in this year's first SLBS (SLBS 2007-1).  In this issuance, about 144,000 government-guaranteed student loans facilitated by nine banks for the first semester of 2007 were used as underlying assets.

 All of the funds raised through the latest issuance of SLBS will be used to provide more student loans.  About 160,000 student loans not included in the recent issuance will be used as underlying assets for this year's second SLBS issuance (SLBS 2007-2, approximately KRW534 billion) scheduled on June 19.

 The SLBS issued in May has eight maturities, from one year to 20 years.  SLBS in three maturities of one to three years have no call options, while SLBS in five maturities of five years or more have call options.

 The interest rates for SLBS maturing in one, three, five, 10, and 20 years are 5.18%, 5.36%, 5.43%, 5.48%, and 5.57%, respectively, and the average interest rate is 5.48%

 The share of medium-term SLBS maturing in five to seven years is 39.4%, and that of long-term SLBS maturing in ten years or more is 33.8%.  The recently issued SLBS was undertaken by 15 institutional investors.