Europe-based bank loans Woori $100 million
Woori Bank, Korea’s third-largest lender, said Monday it has borrowed $100 million from a European bank to boost its foreign capital base.The one-year debt carries an interest rate of 3.4 percentage points higher than the London Interbank Offered Rate, the state-owned bank said in a statement. The deal comes after the lender agreed with Australian investment bank Macquarie Group last week to set up a $1 billion fund for investments in Korea.
“Woori Bank has secured stable foreign currency liquidity by diversifying dollar funding methods,” a bank official said. The lender said it is also set to announce a $200 million loan from a U.S. bank with a maturity of two years.
Meanwhile, Hana Bank, Korea’s fourth-largest lender, said it is mulling floating $500 million in government-guaranteed overseas bonds.
The foreign debt sales would make Hana Bank the first lender to tap into the government’s $100 billion guarantee program, set up in October to alleviate dollar liquidity problems.
Joining the fund-raising efforts, regional lender Busan Bank also said it will bring in $200 million from Calyon Bank and other European lenders. The loans will pay interest rates of 3.4 to 5.9 percentage points higher than the London Interbank Offered Rate and are repayable over 18 months at maximum, said the lender based in Busan, Korea’s second-largest city.Yonhap
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)