South Korea to issue Aussie dollar bonds for first time, says official
Repeats earlier story with no change in text
SEOUL, Nov 6 (Reuters) -South Korea plans to sell Australian dollar notes for the first time in early December, as it seeks to attract fresh money from global investors after obtaining a surprise inclusion in FTSE Russell's major global bond index in October.
The country's finance ministry is currently organising debt syndicators to issue Aussie dollar notes worth $300 million, or about A$450 million, a finance ministry official said.
A team of officials will head to Sydney in late November to meet potential investors. They may also head to Japan before the end of this year, said the official, who declined to be named due to ministry policy.
South Korea is tapping the Aussie bond market after FTSE Russell on Oct. 8 said it wouldadd South Korea's sovereign bonds to an estimated $30 trillion World Government Bond Index (WGBI) from next year.
The finance ministry expects a positive market reception backed by demand from Australia's fast-growing A$3.9 trillion ($2.57 trillion) pensions industry, at a time when investors need more options amid a global campaign to ease monetary policy.
"This is the first issue of Australian dollar-denominated foreign currency bonds, which not only diversifies funding, but also attracts new investors to the government bond market after joining the WGBI," the finance ministry official said.
The government also hopes to court new investors to support trading of South Korean debt on international platforms such as Euroclear.
($1 = 1.5156 Australian dollars)
Reporting by Cynthia Kim
Editing by Ed Davies
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