korean-banks-rush-to-tap-bond-markets

Korean banks rush to tap bond markets

Dollar bond issues by Hana Bank and Industrial Bank of Korea are likely to take advantage of government-issued foreign currency payment guarantees.

Two Korean lenders, Hana Bank and Industrial Bank of Korea IBK, are planning to issue US dollar bonds in the near future, and are likely to make use of state-backing in order to reduce their funding costs.

Hana Bank, Korea's fourth biggest lender, said in an email to local media that it might issue $500 million in three-year global bonds backed by a government guarantee. It will be the first Korean bank to use the facility, for which it will have to pay a fee.

In October, the government announced a package of foreign currency payment guarantees for domestic banks worth $100 billion to help stabilise the volatile financial markets...

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