Bank of China supports Korea Eximbank's first Hong Kong dollar bond issuance

SEOUL, July 09 (AJP) - Bank of China has assisted the Export-Import Bank of Korea in issuing its first Hong Kong dollar-denominated public bond, known as a Wanthang bond. It is the first time the Bank of China has underwritten a bond for a South Korean policy bank.

The bank served as settlement and clearing agent, joint lead manager and bookrunner, and handled the cross-currency swap transaction.

Korea Eximbank’s bond is the fourth Wanthang bond to be issued globally, following those by the Asian Infrastructure Investment Bank, the International Finance Corporation, and the Asian Development Bank. It is the first of its kind from a sovereign policy financial institution and also the first issued by a South Korean entity.

The three-year bond, totaling 2.4 billion Hong Kong dollars, was priced at 2.969 percent. The order book reached a peak of 8.7 billion Hong Kong dollars, representing 3.625 times oversubscription. According to the Bank of China, this set a new record for demand among Wanthang bond issuances.

Korea Eximbank is one of South Korea’s most active issuers in global debt markets. Its entry into the Hong Kong dollar public bond market is seen as a signal of increasing diversification and investor confidence.

"We are honored to support our client in expanding its international funding footprint," said Bank of China. The bank noted that its Seoul branch worked closely with the professional team at Bank of China Hong Kong, reflecting its global operations and cross-border execution capabilities.

South Korea is a major economy in the Asia-Pacific region, with an open and well-regulated financial market. Cross-border investment and financing cooperation between China and South Korea has continued to grow, supported by strong institutional frameworks and capital market depth.

Bank of China stated that it would continue to work with South Korean clients, offering a broader range of financial services by leveraging its global network and cross-border support infrastructure.

Park Sae-jin swatchsjp@ajunews.com