South Korea to issue benchmark euro-denominated bonds in dual tranche

Published 26/06/2025, 09:16
South Korea to issue benchmark euro-denominated bonds in dual tranche

SEOUL - The Republic of Korea announced Thursday it will issue benchmark euro-denominated bonds in two tranches, according to a pre-stabilization notice issued by J.P. Morgan Securities plc.

The offering consists of 3-year and 7-year senior unsecured fixed-rate notes, with the final aggregate nominal amount yet to be determined. The securities will be listed on the Singapore Exchange (OTC:SPXCY), London Stock Exchange (LON:LSEG) International Securities Market, and the Euro MTF of the Luxembourg Stock Exchange.

J.P. Morgan Securities plc will serve as the stabilization coordinator, with Goldman Sachs, HSBC, and Credit Agricole (OTC:CRARY) acting as stabilization managers. The stabilization period is expected to begin June 26, 2025, and end by July 26, 2025.

The stabilization managers may over-allot securities up to 5% of the aggregate nominal amount to support market prices, though such action is not guaranteed and may cease at any time within the stabilization period.

The bonds will have a minimum denomination of EUR 100,000 with increments of EUR 1,000. They will not be registered under the U.S. Securities Act and are not offered for sale in the United States.

The announcement indicates the notes will be SEC registered, despite not being offered in the U.S. market.

This bond issuance represents South Korea’s latest effort to access international capital markets. The offer price and other specific terms have not yet been confirmed, according to the press release statement.

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