Korea Investment & Securities Completes Issuance of 36 Billion Yen-Denominated Foreign Currency Bonds

Korea Investment & Securities announced on July 13 that it had successfully completed the demand forecasting for its public offering of unsecured Samurai bonds denominated in Japanese yen, totaling 36 billion yen (approximately 335.3 billion won), earlier this month and completed the issuance on the same day.

This yen-denominated bond attracted significant attention from local institutional investors, securing valid orders totaling 53.1 billion yen during the market demand survey. The issuance amounts by maturity were 17 billion yen for the 2-year tranche, 9.3 billion yen for the 3-year tranche, and 9.7 billion yen for the 5-year tranche. Compared to the first issuance in 2023, the spread over the TONA (Tokyo Overnight Average Rate) mid-swap rate narrowed by 15 basis points for the 2-year notes and by 40 basis points for the 3-year notes, settling at +130bp and +170bp, respectively. The newly introduced 5-year tranche was set at +185bp. SMBC Nikko Securities served as the lead manager.

Korea Investment & Securities became the first Korean securities firm to successfully issue a yen-denominated bond in 2023, broadening its foreign currency funding base. In 2024, the company further strengthened its funding stability by raising an additional 10 billion yen. The company emphasized that, based on the trust accumulated to date, it was able not only to finalize the interest rate at the lower to mid-range of the initial guidance band, but also to achieve a meaningful milestone by successfully introducing a long-term 5-year tranche to its maturity structure.

A representative from Korea Investment & Securities stated, "With this issuance, we have reaffirmed Korea Investment & Securities’ solid position in the Japanese public bond market and meaningfully expanded the investor base to include longer-term tranches. We will diversify our global business by utilizing these funds and will continue to build a stable and diversified funding network going forward."

This content was produced with the assistance of AI translation services.