S.Korea sells 1.3 bln USD of sovereign bonds to global investors at record-low yield spread

2021-10-07 08:35:24 GMT2021-10-07 16:35:24(Beijing Time) Xinhua English

SEOUL, Oct. 7 (Xinhua) -- South Korea sold about 1.3 billion U.S. dollars of sovereign bonds to global investors at a record-low yield spread, the finance ministry said Wednesday.

The foreign exchange stabilization bonds were issued in two classes denominated in the U.S. dollar and the euro, according to the Ministry of Economy and Finance.

The 10-year dollar bond worth 500 million dollars carried a yield of 1.769 percent or 25 basis points of premium on the 10-year U.S. Treasury Bond yield.

The five-year euro bond worth 700 million euros (about 800 million U.S. dollars) was sold at a yield of minus 0.053 percent, or 13 basis points on the five-year euro mid-swap rate.

Both of the yield premiums marked the lowest among the FX stabilization bonds ever issued by the South Korean government.

The FX stabilization bonds are sold by the finance ministry to raise funds necessary for smoothing operations in the foreign exchange market. The bond's yield acts as a benchmark for debts sold overseas by the private sector.

The ministry said the euro-denominated bond was issued as the green bond to financially support green energy projects. Enditem

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