The Export-Import Bank of Korea (KEXIM) has restarted marketing kangaroo bonds following a hiatus due to the coronavirus.

The three-year floating-rate note and fixed-rate note being offered by the state-owned bank are the first kangaroo bond issues by Korean institutions since kangaroo bond issuance ground to a halt this year because of the COVID-19 crisis.

The Korea Resources Corp withdrew its plan to issue kangaroo bonds in February considering dismal market conditions.

KEXIM gave an initial price guidance on the two notes at 120 basis points spread to the three-month Australian Bank Bill Swap Rate (BBSW).

A kangaroo bond is issued by non-Australian firms and is denominated in the Australian dollar in the Australian market, which has a reputation for being conservative and sensitive to issuance rates.

Rated AA by S&P, Aa2 by Moody’s and AA- by Fitch, KEXIM provides financial supports for export and import transactions, overseas investments projects and the development of overseas natural resources.

KEXIM has mandated JP Morgan, Mitsubishi UFJ Financial Group, National Australia Bank and Westpac for the bond offering.

(Reporting by Hye-rim Pi)