ID :
209839
Wed, 09/28/2011 - 04:48
Auther :
Shortlink :
https://www.oananews.org//node/209839
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Korea Finance seeking to sell Kangaroo bonds
SEOUL (Yonhap) - South Korea's state-run policy lender Korea Finance Corp. (KoFC) is considering selling so-called Kangaroo bonds as part of its efforts to diversify its funding sources, its head said Wednesday.
Chin Young-wook, chief executive of KoFC, said in an interview that KoFC is checking conditions to float the Australian dollar-denominated debt under a medium-term note program set in July.
A Kangaroo bond is an Australian dollar-denominated bond floated in Australia by non-Australian firms. Under a medium-term note program, an issuer is able to sell bonds frequently after setting the borrowing limit and the issuance term of the debt in advance.
KoFC is trying to diversify its funding sources to reduce the weight of dollar-backed debt. It has sold Swiss franc-denominated debts of US$210 million and Samurai bonds worth $391 million this year.
Chin added that the policy lender plans to aggressively support viable savings banks by helping them boost their capital.
"KoFC plans to help viable savings banks recapitalize so as to restore market confidence," he added.
South Korea is pushing to overhaul ailing savings banks in a bid to prevent potential defaults from hurting the financial system.
Savings banks whose capital adequacy ratios stand above 5 percent are eligible to receive public funds to bolster their capital.
KoFC also plans to buy subordinated bonds or convertible preferred stocks issued by savings banks to help them to raise their capital ratio to above 10 percent, Chin added.
Chin Young-wook, chief executive of KoFC, said in an interview that KoFC is checking conditions to float the Australian dollar-denominated debt under a medium-term note program set in July.
A Kangaroo bond is an Australian dollar-denominated bond floated in Australia by non-Australian firms. Under a medium-term note program, an issuer is able to sell bonds frequently after setting the borrowing limit and the issuance term of the debt in advance.
KoFC is trying to diversify its funding sources to reduce the weight of dollar-backed debt. It has sold Swiss franc-denominated debts of US$210 million and Samurai bonds worth $391 million this year.
Chin added that the policy lender plans to aggressively support viable savings banks by helping them boost their capital.
"KoFC plans to help viable savings banks recapitalize so as to restore market confidence," he added.
South Korea is pushing to overhaul ailing savings banks in a bid to prevent potential defaults from hurting the financial system.
Savings banks whose capital adequacy ratios stand above 5 percent are eligible to receive public funds to bolster their capital.
KoFC also plans to buy subordinated bonds or convertible preferred stocks issued by savings banks to help them to raise their capital ratio to above 10 percent, Chin added.
