□ KHFC Issues KRW 329.2 Billion in 4th MBS This Year

 On September 26, KHFC issued KRW 329.2 billion in this year's fourth MBS.  The cumulative issuance of MBS by KHFC in the year to date is KRW 1.363 trillion.  There are eight maturities, from one year to 20 years.  A call option is attached to MBS maturing over five years as a safeguard against early redemption of bogeumjari loans.   The interest rates for MBS maturing in 1, 3, 5, 10, 15, and 20 years are 4.70%, 4.76%, 4.95%, 5.06%, 5.16%, and 5.23%, respectively, and the weighted average interest rate is 5.02%.  With the recent 20th issuance, cumulative issuance of MBS by KHFC since its founding is KRW 8.2402 trillion, including KRW 3.160 trillion from seven issuances in 2004, KRW 3.861 trillion from nine issuances in 2005, and KRW 1.3632 trillion from three issuances in 2006. 

 By issuance of MBS, KHFC continues to strive for the growth and development of the long-term bond market in Korea.