KEB Hana Bank established a global covered bond program under the Korean Covered Bond Act, and successfully issued its first EUR covered bonds on January 26, 2021 in the amount of EUR 500 million.  With the extensive experience and know-how accumulated while conducting legal advisory services for various overseas covered bond transactions, Kim & Chang provided comprehensive advisory activities such as close consultation with the financial regulators, rating agencies and global lead managers to introduce the transaction structure most suitable for KEB Hana Bank so that KEB Hana Bank can raise its large amount of long-term finds at a competitive funding cost.

As this was KEB Hana Bank’s first covered bond program and its first issuance of covered bonds under the Korean Covered Bond Act, we provided various advisory services such as structural issues on the transaction and due diligence on the cover assets.  As such, covered bonds have been rated as AAA, which is higher than the sovereign credit rating of Korea, from S&P and Fitch.  The Covered Bond Label Foundation assigned KEB Hana Bank’s covered bond program as the Covered Bond Label.