The South Korean government has sold two billion dollars’ worth of foreign exchange stabilization bonds.
South Korea’s finance ministry said Wednesday that it sold one billion dollars’ worth of dollar-denominated bonds and another one billion dollars’ worth of euro-denominated bonds, according to Korea’s (KBS WORLD) website.
The dollar-denominated bonds with a 30-year maturity carry an interest rate of 4.143%. They are the first foreign currency denominated bonds the government has issued with a 30 year maturity.
The euro-denominated bonds, with a ten-year maturity, carry an interest rate of 2.164%, the lowest in the country’s history.
The bond sales are intended to pay back 2.5 billion dollars’ worth of bonds that mature at the end of this year.
The government hopes that by issuing 30-year bonds, it will steer the private sector to sell long-term bonds.
The ministry said the success of the sale reaffirms investor confidence in the fundamentals and mid- to long-term growth potential of the South Korean economy.