[Provided by Woori Bank]
[Provided by Woori Bank]

Woori Bank said Wednesday that four of its overseas branches had raised $275 million by issuing foreign-currency bonds directly in their local markets.

The four branches are in London, Hong Kong, Los Angeles and Singapore. The Hong Kong branch kicked off the series in April with a $50 million issuance, and all four branches completed their respective offerings by early July.

Previously, Woori Bank's head office had handled all foreign-currency bond issuances on behalf of overseas branches. The bank said the branches' ability to issue bonds independently shows they have established the capacity to sustain themselves in local bond markets.

"We had previously relied on short-term funding with maturities of around one year, but this round of issuances has allowed us to stably secure long-term capital with maturities of two to five years," a Woori Bank official said. "This lays the groundwork for strengthening both the business base and profitability of our overseas branches."

The issuances used a medium-term note program, a funding mechanism that allows an issuer to pre-register a borrowing limit in global markets and draw on it as needed. Woori Bank's head office updated its MTN program in January, adding the London, Hong Kong, Los Angeles and Singapore branches as eligible issuers. In February, it provided practical training for staff at each branch to prepare for local issuances.

Building on this result, Woori Bank plans to further develop the independent funding capabilities of its overseas branches. In the second half of this year, the bank will introduce a bonus evaluation item for overseas branches that rewards active use of the MTN program, encouraging continued bond issuances.

Last month, Woori Bank received authorization from British financial regulators and began operations at its London Trading Center. The center is expected to support bond-related transactions through its fixed-income capabilities.

"The successful completion of foreign-currency bond issuances by our overseas branches is highly significant in that it establishes a new framework for stably securing the long-term capital needed for global local operations," said Hong Jin-bang, deputy general manager of Woori Bank's treasury department. "We will continue to enhance our global funding competitiveness and further strengthen our overseas business base."


hyuk@heraldcorp.com