Ministry of Economy and Finance (Yonhap)
SEJONG, Jun. 16 (Korea Bizwire) – The finance ministry announced plans to sell $1.3 billion in foreign exchange stabilization bonds, aiming to attract high-quality SSA (Sovereigns, Supranationals & Agencies) investors.
The targeted investor pool includes governments, central banks, international organizations, and policy finance institutions.
Foreign exchange stabilization bonds are designed to allow governments to intervene in the foreign exchange market, stabilizing their currency’s value and mitigating the impact of speculative foreign currency movements.
To draw in top-tier SSA investors, the government is implementing an advanced issuance methodology that sets a clear target interest rate from the outset.
This approach is intended to ensure stable investment and broaden the capital-raising routes. The investor base is expected to expand from Asian and asset management firms to European, Anglo-American, and other SSA blue-chip investors.
The finance ministry anticipates that global blue-chip investor interest will eventually extend to domestic institutional bonds, promoting long-term investment stability.
On Friday, the ministry selected five financial institutions, including the state-run Korea Development Bank, to manage the sale of the five-year U.S. dollar-denominated bonds. This issuance marks the first sale of such bonds since 2021.
M. H. Lee (mhlee@koreabizwire.com)
