Kexim, the Export-Import Bank of Korea, comes to wrap the year’s fundraising. However, instead of wrapping the fund, they used the chance to prepare the expected 2023 volatile market. According to the plan, Kexim would set the same bond volume just like this year. It means that the total equivalent of the bond volume would be $13bn or around $6bn-$7bn sold publicly. But, there would be a raise announcement for private placements. This year the US dollar market bond is really challenging. So, a firm like Kexim looks for other venue alternatives to manage the budget and stabilize the financial condition.
The team head of treasury group at Kexim, Jae-hoon Oh argued that both the Australian dollar and Mexican peso are really competitive. Therefore, if the dynamic continues to surge, the firm would inspect the markets early next year. This actually could give a big impact to the sterling market. Jae-hoon Oh believes that in 2023 Kexim might issue more non-dollar issuances especially for public offerings. The $2bn huge 2023 pipeline also sports a green label, according to the firm. Thus, the amount would probably exceed this year’s repent prints for as much as $1.6bn. This calculation is based on Refinitiv data.
Based on the market forecast, the supply in the future would be in euros. The reason is because euros are suitable for Korean borrowers using European operations. The epitome is in the electric vehicle batteries sector. For Kexim itself, the company is projecting sustainability-linked bond as it becomes the standard for South Korean issuers. But Jae-hoon Oh argues that the SLB debut would be in 2024 as the bank is still inspecting the performance indicators in detail.
