Lee & Ko’s Capital Markets Practice Group advised the Korean government on its issuance of foreign exchange (“FX”) stabilization fund bonds in an aggregate amount of US$1.45 billion. Issued at the lowest interest rate ever, this issuance is of particular significance as the first issuance of negative-yielding Eurobonds with a premium by a non-European country. This is also the first issuance of Euro-denominated FX stabilization bonds since 2014.
To answer to a high market demand, the scale of the issuance, initially planned to be approximately US$10 billion, was increased, resulting in an issuance comprising US$625 million 1.000% notes due 2030 and €700 million zero coupon notes due 2025.
BNP Paribas, BofA Securities, Citigroup, J.P. Morgan, Mirae Asset Daewoo, and Standard Chartered Bank participated as co-lead managers. The Lee & Ko team included capital markets partners Hyunjoo Oh and Seung-A Hyun, along with capital markets associates Dong Yon Kim, Sang Hyun Ahn, Sarah Kang, and Cheong Su Noh.