South Korea issues euro-denominated bonds for the first time in four years
The South Korean government launched its first euro-denominated bond issuance in nearly four years on Thursday, marking a test of investor confidence following Lee Jae-myung's election as president and the end of months of political turmoil. According to insiders, the price of South Korea's three-year government bonds was about 40 basis points higher than the mid-swap rate, while the seven-year bonds were about 70 basis points higher than the benchmark rate. As one of the highest-rated sovereign credits in Asia, the South Korean government's decision to enter the market at this time comes against the backdrop of easing tensions in the Middle East, which has boosted investor sentiment and driven this week's bond issuance wave. With European inflation cooling faster than in the U.S., the European Central Bank cut interest rates for the eighth time this month, creating a favorable environment for borrowers. The South Korean government itself has a €700 million (approximately $819 million) bond maturing later this year. Officials from the South Korean Ministry of Economy and Finance held a roadshow in London earlier this week. The South Korean government has previously commissioned Goldman Sachs, HSBC HOLDINGS, JPMorgan Chase, Crédit Agricole, and Korea Investment & Securities to lead this bond issuance
According to Zhitong Finance APP, the South Korean government launched its first euro-denominated bond issuance in nearly four years on Thursday, marking a test of investor confidence following Lee Jae-myung's election as President of South Korea and the end of months of political turmoil. According to informed sources, the price of South Korea's three-year government bonds is about 40 basis points higher than the mid-swap rate, while the price of seven-year government bonds is about 70 basis points higher than the benchmark rate.
As one of the countries with the highest sovereign credit ratings in Asia, the South Korean government's decision to enter the market at this time comes against the backdrop of easing tensions in the Middle East, boosting investor sentiment and driving this week's bond issuance wave. With European inflation cooling faster than in the United States, the European Central Bank cut interest rates for the eighth time this month, creating a favorable environment for borrowers.
The South Korean government itself has a €700 million (approximately $819 million) bond maturing later this year.
Officials from the South Korean Ministry of Economy and Finance held a roadshow in London earlier this week. The South Korean government has previously commissioned Goldman Sachs, HSBC HOLDINGS, JPMorgan Chase, Crédit Agricole, and Korea Investment & Securities to lead this bond issuance
