NongHyup Bank issues $500M in dollar bonds

NongHyup Bank successfully floated dollar bonds worth US$500 million.

The five-year bonds carry an interest rate of 2.3 percent, or 165 basis points above the yield on five-year U.S. Treasurys, the lender said. A basis point is 0.01 percentage point.

The proceeds from the bond sale will be used to repay foreign debts that mature in October, the lender added.

NongHyup had originally offered a spread of 180 basis points, but as many as 170 institutional investors subscribed to the debt offer, driving down the spread, it said.

"Amid rising uncertainties in the financial market, the successful bond sale has paved the way to help us secure mid- and long-term bonds and improve our credibility abroad," a bank official said.

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