BNY Mellon, a global leader in investment management and investment services, has been appointed as the trustee for Kookmin Bank’s first issuance of USD500 million under its covered bond program. This is the first covered bond program in South Korea following the introduction of the country’s Covered Bond Act in April 2014.
In addition to acting as trustee, BNY Mellon will act as issuing agent, paying agent, registrar, transfer agent, common depositary, Depository Trust Company custodian and book-entry depositary.
Kookmin Bank is one of the four leading banks ranked by asset value and size in South Korea.
Hong Gy Chang, Senior Manager, Structured Finance, at Kookmin Bank, said, “BNY Mellon has an outstanding reputation and track record in the global debt issuance market and is well equipped with the necessary global experience, technology, local knowledge and capabilities to support our business through this new endeavor. We are confident about our strategic relationship and are excited to be embarking on this journey together. This will be a significant milestone for South Korea’s financial services industry and its bond market.”
“This bond issuance caters to investors in search of greater flexibility and enhanced credit protection,” said Gary Lew, Asia Pacific Head of Corporate Trust, BNY Mellon. “As investors continue to seek secured liquid debt, we expect to see an upsurge in covered bonds issuance in the region and a corresponding growth in demand for covered bond services from our clients.”
BNY Mellon is a leading provider of corporate trust services to the debt capital markets, offering customized and market-driven solutions to investors, bondholders and lenders. As of June 30, 2015, BNY Mellon Corporate Trust served as trustee and/or paying agent on more than 60,000 debt-related issues globally. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services including trustee, paying agency, fiduciary, escrow, and other financial services. The business administers a wide array of assets and types of programs to multinational corporations, financial institutions, governments and their agencies, and the banking, securities, and insurance industries.