Seoul: South Korea issued Australian dollar-denominated bonds worth 450 million Australian dollars (293 million U.S. dollars) for the first time, the finance ministry announced Tuesday. The five-year single-tranche Kangaroo bond was sold at an interest rate of 4.51 percent, marking a significant step in diversifying the country’s foreign currency funding channels.
According to Namibia Press Agency, the issuance of these Australian dollar-denominated foreign exchange stabilization bonds serves not only to diversify funding channels but also to set a benchmark interest rate for future bond issuances. The Ministry of Economy and Finance highlighted the strategic importance of this move, given Australia’s status as South Korea’s fourth-largest trading partner in terms of import value.
Historically, South Korea has issued bonds in U.S. dollars, euros, Chinese yuan, and Japanese yen. The introduction of Kangaroo bonds marks a novel addition to the country’s financial instruments, reflecting its adaptability to gl
obal market trends and its ongoing efforts to strengthen economic ties with key trading partners.
