KEXIM to issue up to W1tr CoCo bonds

[THE INVESTOR] The Export-Import Bank of Korea will issue contingent convertible bonds on June 29.

The export credit agency hopes to raise between 700 billion won (US$605 million) to 1 trillion won with the tier 2, 10-year CoCos. The interest rate is expected to be between 2.1 percent and 2.2 percent.

A number of organizations including the National Pension Fund are said to have expressed interest in the bonds.

The move is aimed at securing capital to prepare for the potential fallout from shipping and shipbuilding industries’ difficulties. According to analysis by Korea Investors Service, KEXIM’s exposure to shipping and shipbuilding industries stands at 25 trillion won.

By Choi He-suk (cheesuk@heraldcorp.com)