[Alpha Biz=(Chicago) Reporter Kim Jisun] Shinhan Investment & Securities, KB Securities and Korea Investment & Securities announced on the 11th that they have completed the issuance of kimchi bonds by an affiliate of Indonesia's Asia Pulp & Paper Group (APP Group), which has the No. 1 market share in the global paper industry, on the 7th.

The affiliate of APP, which issued Kimchi Bond, is 'Oki Pulp & Paper Mills (OKI)'. OKI is a core subsidiary responsible for 40% and 30% of pulp and sanitary paper (tissue) production within the APP Group, respectively. APP Group has been continuously issuing kimchi bonds since 2018 to build a Korean investor base and diversify foreign currency procurement channels.

This issuance is APP Group's sixth kimchi bond, and the organizers and local subsidiaries in Indonesia have been issued through close communication with the issuer and the market. The organizers successfully issued a total of $85 million, up $30 million from the amount due in November, by proposing interest rate stability in the Korean market compared to the global market despite the economic slowdown and high-interest market conditions.

The newly issued Kimchi bond is a two-year variable interest rate bond. The three organizers continue to organize the issuance of kimchi bonds by Indonesian companies and continue to expand the presence of Korean financial institutions in the Indonesian capital market.

 

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