KIS Issues Foreign Currency Bonds Worth $400 Million

Korea Investment Holdings Chairman Kim Nam-goo. (Photos: Korea Investment & Securities)

Korea Investment & Securities (KIS) succeeded in issuing $400 million (540 billion won) worth of foreign currency bonds, KIS said on Oct. 31.

By raising foreign currency issuance of $100 million more than expected, it is evaluated to dispel recent uncertainties and concerns surrounding the financial market and demonstrates Korea’s raising competitiveness.

The latest foreign currency bonds were issued with rates of 235bp more than U.S. three-year Treasury Bonds.

KIS increased the issuance amount of foreign currency bonds from $300 million to $400 million, as about 170 institutional investors placed orders worth $2.65 billion.

The rate of the bonds was set at 25bp lower than the first guidance.

KIS’s successful issuance may be construed as KIS’ diversifying its business portfolio through aggressive actions and attracting investors’ trust over its stability.

KIS held face-to-face road shows targeting about 50 institutional investors in areas, such as Hong Kong and Singapore, from Oct. 25 to Oct. 27.

The foreign currency bonds were managed by Citigroup Inc., the Hongkong and Shanghai Banking Corporation Ltd. (HSBC), Natixis SA and KIS Asia Ltd. It was the third time KIS issued foreign currency bonds.

Starting with the issuance of $600 million Euro bonds in 2021, KIS has stepped up bond issuance stability by issuing 20 billion yen worth of Samurai bonds in July 2023 as the first Korean securities company.

KIS plans to ramp up its global business on the back of the issuance of the latest foreign currency bonds.

Early this year, SF Credit Partners, a joint-venture entity, established by KIS and Stifel Financial Corp., is engaged in acquisition financing and private debt funds.

KIS also struck a strategic partnership with Carlyle Group, one of the world's leading private equity fund management companies, to expand investment bank deal sourcing channels and offer differentiated global financial products.

Korea Investment & Securities (KIS) launched 23 kinds of equity-linked securities, KIS said on Nov. 2.

KIS Releases 23 Kinds of Equity-Linked Securities

Korea Investment & Securities (KIS) launched 23 kinds of equity-linked securities, KIS said on Nov. 2.

“TRUE ELS 16607” is a maturity booster product based on the underlying stock of Naver.

It has a one-year maturity. When the underlying stock tops 90 percent of the basic price in the fourth month, a yield of 4.81 percent will be paid and returned earlier.

Loss or profit will be based on upward and downward movements of the underlying stock, compared to the initial basic price at the time of maturity.

If the maturity evaluation price surpasses 100 percent of the initial basic price, a yield of 300 percent of the growth rate will be paid, but when it falls below that, a loss of 100 percent of the principle will be incurred.

Korea Investment & Securities, a subsidiary of Korea Investment Holdings, will offer services to open individual retirement pension accounts via the mobile app of Toss Bank, KIS aid on Oct. 17.

KIS Enters Partnership with Toss to Open IRP Accounts

Korea Investment & Securities, a subsidiary of Korea Investment Holdings, will offer services to open individual retirement pension accounts via the mobile app of Toss Bank, KIS aid on Oct. 17.

It is the first time a securities company has offered IRP partnership services via Toss Bank.