South Korea to sell $500 million in foreign currency debt: Finance Ministry official

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Seoul | Published: July 8, 2016 11:09:08 AM

South Korea's government plans to sell $500 million worth of foreign currency bonds to repay maturing dollar-denominated debt...

 foreign currencyThe country’s foreign exchange reserves, the world’s seventh largest, stood at 9.89 billion as of June. (Reuters)

South Korea’s government plans to sell $500 million worth of foreign currency bonds to repay maturing dollar-denominated debt, an official at the finance ministry said on Friday.

The official, who declined to be identified as plans have not been finalised, said new bonds would be sold around the same time as when the government’s existing $500 million worth of debt matures in December.

South Korea said earlier in the day it would consider issuing foreign-currency denominated bonds depending on market conditions as it seeks to minimise potential market unrest stemming form Britain’s decision to leave the  European Union.

South Korean ministries, in a joint statement, said the government would maintain stable foreign exchange reserve levels and would consider issuing foreign-currency sovereign debt depending on market conditions.

The country’s foreign exchange reserves, the world’s seventh largest, stood at $369.89 billion as of June.

South Korea would also ease conditions under which it can use funds entrusted to sovereign wealth fund Korea Investment Corp to ensure the government can secure additional foreign currency liquidity if needed.

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