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The Export-Import Bank of Korea (KEXIM) Raises Another RM700 Million From The Ringgit Market

Kuala Lumpur, 23 June 2010

RHB Investment Bank Berhad, as sole lead manager,  successfully priced another Ringgit bond issue of RM700 million for The Export-Import Bank of Korea (KEXIM) after a successful private placement-cum-book building exercise which took place last week following favourable feedback from an investors briefing held in May.

Issued out of an existing Multi-Currency Multi-Option MTN Programme of RM3 billion that RHB Investment Bank had arranged for KEXIM, the issue was upsized from an original target of RM500 million on book closure last Friday. Comprising 2 separate tranches - RM300 million for 3 years and RM400 million for 5 years’ maturity – the bonds are slated for issuance on 1 July 2010. The 3-year papers were privately placed at 4.00% pa whilst the 5-year tranche was priced at 4.50% pa after a book running exercise. This compares favourably to a competing issue by another foreign issuer launched at the same time which was priced higher at 4.75% for a 5-year paper.

KEXIM, Korea’s official export credit agency and a policy bank of the Korean Government, had its international rating upgraded by Moody’s from A2 to A1 with a stable outlook in April which placed it in an even stronger position to tap the still high liquidity in the Ringgit market. In Malaysia, KEXM commands a AAA rating from MARC and its bonds qualify as assets with low risk status for insurance companies in Malaysia. The shareholders of KEXIM are the Korean Government, the Bank of Korea and Korea Finance Corporation.

Note to editor:
KEXIM, an agency of the Korean Government, is an official export credit agency providing comprehensive export credit and guarantee programmes to support Korean enterprises in conducting overseas business. Since its establishment in 1976, KEXIM has actively supported Korea’s export-led economy and facilitated economic co-operation with foreign countries. Its primary services include export loans, trade finance, and guarantee programs structures to meet the needs of clients in a direct effort to both complement and strengthen the clients’ competitiveness in global markets. Its also provides overseas investment credit, import credit and information services related to business opportunities abroad. Korea is a main exporter in the world and has many corporates with global brand names.

The shareholders of KEXIM are the Government of the Republic of Korea, the Bank of Korea and Korea Finance Corporation. Its authorised capital stands at KRW8,000,000  trillion whilst paid up capital as of 22 June 2010 is KRW5,158,755 million. KEXIM has international rating of A1 from Moody’s Investors Service which is same as the sovereign rating of the Korean Government.

Issued by Group Corporate Communications Division, RHB Capital Berhad. For more information, please call Eza Dzul Karnain at 012-3420060 or Sandra Foo at
012-3188412.

About the RHB Banking Group

The RHB Banking Group is the fourth largest fully integrated financial services group in Malaysia. The Group’s core businesses are streamlined into four Strategic Business Groups (SBGs): Retail Banking, Corporate & Investment Banking, Islamic Banking and International Banking. These businesses are offered through its main subsidiaries – RHB Bank Berhad, RHB Investment Bank Berhad, RHB Insurance Berhad and RHB Islamic Bank Berhad, while its asset management and unit trust businesses are held under RHB Investment Management Berhad. RHB’s International Banking Division include the commercial banking operations in Singapore, Thailand and Brunei. The Group also has a non-ringgit based offshore funding operations in Labuan as well as a representative office in Vietnam. It is the RHB Banking Group’s aspiration to deliver superior customer experience and shareholder value; and be recognised as one of the top financial services groups in ASEAN.

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