2 weeks Ago By Kim Min-jee
KB Kookmin Bank announced that its Indonesian subsidiary, KB Bank Indonesia, successfully issued a $300 million global bond (senior unsecured notes) on October 23. This marks the first issuance for KB Bank Indonesia, which secured competitive interest rates due to favorable evaluations and strong creditworthiness among investors. Following the decision to issue bonds, KB Bank Indonesia conducted a three-day roadshow for more than 70 institutional investors from Hong Kong and Singapore.
Global investors responded positively to KB Bank’s financial restructuring, including improved financial health and reduced non-performing assets over the past four years, leading to demand totaling $1.35 billion, 4.5 times the issuance amount, despite uncertainties in the Middle East and upcoming U.
S. elections. In June, KB Bank Indonesia became the first subsidiary among domestic commercial banks to receive a ‘BBB’ rating with a stable outlook from global credit rating agency Fitch, matching the rating of the Indonesian government and aligning with the country’s four major banks: Mandiri, BRI, BNI, and BCA.
“Building on the success of this global bond issuance and the upcoming launch of our next-generation banking system (NGBS) early next year, we aim to enhance management efficiency and develop our wholesale and retail businesses,” said an official from KB Kookmin Bank. KB Bank Indonesia, a medium-to-large bank with a network across Indonesia, received a Grade 2 rating, effectively the highest, from the local financial authority OJK in the Risk Based Banking Rating (RBBR) in 2022, and has maintained this rating since..
