KHFC Issues KRW 389.2 Billion in 5th MBS This Year

 On December 15, 2006, KHFC issued KRW 389.2 billion in this year's fifth MBS. In this issuance, bogeumjari loans extended by 17 financial institutions were used as underlying assets. It brought the KHFC's cumulative issuance of MBS in 2006 to a total of KRW 1.7524 trillion.

 The securities issued covered a range of eight maturities, from one year to 20 years. MBS with a maturity of five years or more provided a call option as a safeguard against early redemption of the underlying bogeumjari loans.

 The interest rates for MBS maturing in one, three, five, 10, 15, and 20 years were 4.86%, 4.93%, 5.07%, 5.10%, 5.15%, and 5.20%, respectively, and the weighted average interest rate is 5.09%.

 This represented the 21st issuance of MBS by KHFC since its founding. In all, it has raised  KRW 8.6294 trillion: specifically KRW 3.0160 trillion from seven issues in 2004, KRW 3.8610 trillion from nine in 2005 and KRW 1.7524 trillion from five in 2006. Through its issue of MBS, KHFC continues to work toward the growth and development of the long-term bond market in Korea