Jakarta. KB Bank recently announced that it had completed the pricing of its first Senior Unsecured Notes (Global Bonds) worth $300 million in Singapore.

This made KB Bank the first overseas subsidiary of a South Korean commercial bank to issue global bonds with an international credit rating. This issuance holds additional value given the uncertain economic climate amid the upcoming US presidential election and evolving geopolitical situation in the Middle East. The issuance of these global bonds is part of KB Bank’s strategy to diversify long-term funding sources, gradually reducing reliance on short-term foreign loans (refinancing).

Previously, KB Bank conducted a non-deal roadshow for the issuance of global bonds from October 16 to 18, 2024. The non-deal roadshow served as a platform for KB Bank to communicate its growth achievements to investors. Global investors appeared to provide positive feedback regarding the restructuring of performance and the transformation journey at KB Bank following its official integration into South Korea’s largest commercial bank, KB Kookmin Bank.

“The issuance of KB Bank’s global bonds, denominated in USD, aims to strengthen the bank’s funding structure, particularly USD-based funding. With an issuance amount of $300 million and a competitive bond coupon rate of 5.658 percent, we received a positive response from investors, as evidenced by the oversubscription of up to 4.5 times,” Vice President Director of KB Bank Robby Mondong said.

The settlement for KB Bank’s global bond issuance is scheduled for October 30, 2024, involving several prominent financial institutions acting as Joint Lead Arrangers for the transaction, including Crédit Agricole Corporate and Investment Bank, The Hongkong and Shanghai Banking (HSBC) Co., Ltd, KB Securities Hong Kong Limited, and Morgan Stanley & Co. International Plc. KB Bank’s global bonds are listed on the Singapore Stock Exchange (SGX-ST) and are issued under Regulation S (“Reg S”) in accordance with the US Securities Act of 1933. These bonds have a 3-year tenor, maturing on October 30, 2027.

KB Bank independently secured the highest global bond rating for an Indonesian issuer, receiving a ‘BBB’ rating from Fitch Ratings, equivalent to Indonesia’s Sovereign Credit Rating. This successful global bond issuance marks KB Bank’s initial step into the international capital markets.

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