Raises About 740 Billion Won Through Two- and Three-Year Tranches on April 29
KB Kookmin Card headquarters (Photo provided by KB Kookmin Card)
KB Kookmin Card said it raised foreign currency funds worth about 740.0 billion won ($533.64 million) through the ABS issuance backed by credit card receivables. HSBC Hong Kong and ING Bank acted as joint lead managers, and the issuance was split into an average maturity of two years ($250 million) and three years (€250 million equivalent).
The company said the procured funds were hedged against exchange rate and interest rate fluctuation risks through a currency rate swap, or CRS, securing both stability and liquidity at the same time. Through this, KB Kookmin Card has diversified its global funding base and strengthened its foreign currency liquidity management capabilities.
For the ABS issuance, KB Kookmin Card updated its “KB Kookmin Card Green, Social and Sustainability Financing Framework” and obtained the highest score among domestic financial institutions, “Excellent(SQS2, Sustainability Quality Score),” from the international credit rating agency Moody’s. It is also expected to receive an ESG subsidy from the Hong Kong Monetary Authority.
The procured funds are to be used for inclusive finance programs, including expanding mid-interest-rate loans for low- and mid-credit customers and supporting vulnerable groups with limited access to financial services.
A KB Kookmin Card official said, “The successful issuance on competitive terms despite high volatility in the global market is an achievement built on trust with investors,” adding, “We will continue to diversify our funding base and expand inclusive finance going forward.”
Jung Suk-yee
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