이 누리집은 대한민국 공식 전자정부 누리집입니다.

한상넷

비즈니스 정보

Biz News Korea(Eng)

Exim Bank issues $425 mn worth CoCo bonds to bolster capital

Collected: 2016.11.27

Distributed: 2016.11.28

Source: Go Direct

The Export-Import Bank of Korea (EXIM Bank) said Friday that it has successfully issued 500 billion won ($424.6 million) worth of contingent convertible bonds (CoCo bonds), in a move to improve its financial soundness after sweeping corporate restructuring in the shipbuilding sector. The bonds are the bank’s first CoCo bonds issued since its foundation in 1976.

According to the bank, the issued CoCo bonds have a maturity of 10 years and an interest rate of 2.73 percent – 0.58 percentage point higher than the 10-year treasury notes. EXIM Bank’s Bank for International Settlements’ (BIS) capital adequacy ratio will improve about 0.04 percentage point from 9.68 percent at the end of the first half following the bond issuance.

CoCo bonds guarantee the payment of principal and interest by the issuer in ordinary times, but can provide reduced payment obligations or a conversion into equity when the issuer goes bust. These bonds are regarded as asset, rather than debt in the balance sheet, an attractive option to banks which want to meet the BIS capital adequacy requirements.

By Noh Seung-hwan

List

Previous: S. Korea’s consumer confidence worst since 2008 financial crisis

Next: BOK to downsize bond issuance for market stabilization