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BKL Advises NongHyup Bank on Issuance of Social Bonds relating to COVID-19 in the Principal Amount of US$500 Million Under Its GMTN Programme


BKL advised NongHyup Bank on its issuance of US$500,000,000 1.250% Notes due 2025 (the "Notes") under its US$8,000,000,000 Global Medium Note Programme (the "Programme") on July 20, 2020.

The Notes are the first “Social Bonds” issued by NongHyup Bank and the net proceeds are to be used to support agriculture, rural areas and farmers, small and medium-sized companies, low-income individuals and tenants of public housing, affected by the COVID-19 pandemic. Despite the difficult capital markets conditions due to the COVID-19 crisis, the Notes attracted strong interest from investors, soliciting purchase orders from about 132 institutional investors for an aggregate amount of US$2.35 billion. 

The offering of the Notes was made to foreign investors pursuant to Rule 144A and Regulation S, and the Notes were listed on the Singapore Exchange on July 21, 2020. 

BKL acted as Korean legal counsel to NongHyup Bank, providing overall Korean legal advice throughout the update of the Programme and issuance of the Notes, including review of the offering circular, relevant agreements and other documents. BKL contributed to the successful completion the transaction by addressing various legal issues in an efficient, proactive, and timely manner. The BKL team included partners Hee-Gang SHIN, associates Young Jin HA and Jung-Won HWANG, and senior foreign legal advisor Heesug CHUNG.

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