 KHFC Issues KRW 312.5 Billion in 3rd MBS This Year

 On July 14, KHFC issued KRW 312.5 billion in this year's third MBS.  The cumulative issuance of MBS by KHFC in the year to date is KRW 1.034 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 one, three, five, 10, 15, and 20 years are 4.92%, 5.09%, 5.31%, 5.45%, 5.57%, and 5.62%, respectively, and the weighted average interest rate is 5.40%.  With the recent 19th issuance, cumulative issuance of MBS by KHFC since its founding is KRW 7.911 trillion, including KRW 3.160 trillion from seven issuances in 2004, KRW 3.861 trillion from nine issuances in 2005, and KRW 1.034 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.