KB Kookmin Bank issues €500 mn in covered bonds

South Korea's KB Kookmin Bank said on Tuesday that it issued €500 million ($545 million) in global covered bonds the previous day.

Covered bonds are issued by financial institutions, backed by high-quality assets they hold as collateral.

The interest rate for the issuance is 2.828% annually, which is 0.45 percentage points higher than the euro mid-swap (MS) rate.

These bonds, which will be listed on the Singapore and Frankfurt stock exchanges, are designated as sustainability bonds, with the funds raised being used for eco-friendly and social projects under KB Kookmin Bank's "Sustainable Finance Management Framework."

"This is the bank’s fifth euro-denominated covered bond issuance since the first in July 2020," a KB Kookmin Bank source said. "With five consecutive successful issuances, we have solidified our position as a leading covered bond issuer in Asia,"

Write to Bo-Hyung Kim at kph21c@hankyung.com