US$1 billion FX stabilization bond issuance.
The Ministry of Finance and Economy successfully issued dollar- denominated ROK bonds worth US$1 billion dollars to U.S., European and Asian investors September 16, 2004. Orders received for these bonds were worth triple the amount of bonds actually issued.
There was a spread of 85 basis points (0.85 percent) between these ten-year ROK bonds and U.S. Treasury bonds, approximately 5 basis points lower than the bonds issued last year. The yield for these bonds is 4.966 percent and the coupon rate 4.875 percent.
This bond issuance success is believed to reflect a positive assessment by foreign investors of the Korean economy.
The bond issuance deal road show proved to be extremely effective in comparison to previous non-deal road shows, in so far as it raised the awareness of global investors about economic opportunities in Korea by explaining the country's current situation and policy direction.
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|Title Annotation:||Economic News Briefing|
|Publication:||Economic Bulletin (Korea)|
|Article Type:||Brief article|
|Date:||Oct 1, 2004|
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