The Korea SMEs and Startups Agency has returned to the international capital market for the first time in a decade by issuing a $400 million social bond.
On August 19, the agency announced that it successfully issued the 3.5-year maturity social bond at a spread of 40 basis points over U.S. Treasury rates.
The agency noted that this represents the lowest spread ever for a fixed-rate foreign currency bond issued by a domestic public corporation.
Ahead of its return to the international capital market, the agency actively promoted its creditworthiness and policy finance achievements while building a global investor network.
From July 12 to 17, it held a non-deal roadshow in major financial hubs including Hong Kong, Singapore, and Taiwan, and conducted a final deal roadshow on August 12 and 13 to gauge investor interest. These two investor relations sessions attracted broad investment demand from institutional investors in Asia, Europe, and the Middle East.
The international credit rating agency Moody's awarded the bond the highest rating of 'SQS1 (Excellent)' in the social financing category for its environmental, social, and governance (ESG) evaluation.
In line with the purpose of the social bond to realize social value and address issues, the funds raised will be allocated to support the artificial intelligence transition (AX) of small and medium enterprises, foster new industries, secure innovation growth drivers, and create jobs.
Kang Seok-jin, the agency's president, stated, "This achievement reflects global investors' high regard for the agency's fundamentals and the growth potential of Korean small and medium enterprises. We will continue to diversify our funding sources to secure quality capital in a timely manner and serve as a strong support for small and medium enterprises in overcoming crises and achieving innovative growth."
* This article has been translated by AI.
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