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[Music] good morning everyone and thank you all for joining us here today i am chuyong park from the treasury group at the export import bank of korea and it's an honor to be here with the ministry of economy and finance along with katie to be representing korean issuers this year at the bell as many of you may know we are one of the largest issuers here in korea and that being said it's really important for us to have a strong relationship as well as a strong communication channel with our investors our potential investors and market participants so with that being said we'd first like to thank the bell and the joint arrangers for inviting us to this event of the 2020 korean global corporate ir where we can we believe that we can strengthen this relationship and demonstrate some strong presence in the debt capital market today so although you may already be familiar with who we are i'm going to assume that there is an audience that doesn't know exactly what we do as a korean eca so i would like to first start off with a overview of kexim and talk about our role in policy credit and financials and then move on to our most recent funding activities so uh okay as an official export credit agency of korea kixin's policy mandate is to support korean enterprises conducting business overseas by providing comprehensive export loans and guarantee programs so we are a 100 percent uh government-owned policy bank with about 68 directly owned by the government and the rest being held by the central bank as well as another policy bank which also happens to be government owned and such ownership is actually described in the kickstand act where by this act the korean government is to support uh keksim solvency in the event of default so here on the top left you can see uh keximax article 37 which states the compensation for amount of loss so the amount net losses at the annual net losses of the export-import bank of korea shall be offset each year by the reserve and if the reserve be insufficient the government shall provide funds to cover the deficit and thankfully fortunately this has not been triggered in the past because we haven't experienced loss which exceeds the reserve so while we receive full government support we also align our businesses with the economic policies of the government so as a policy arm we are also responsible for the operation of two government-entrusted funds uh the economic development cooperation fund more well known as edcf and the inter-korea cooperation fund abbreviated into ikcf so these two funds although we do manage them we do not have them under our financial statements as they are managed under separate accounts so and reflecting the government's strong support keksim's credit ratings are equivalent to the government being double a2 by moody's double a by smp and double a minus by fitch and keksim is exempt from applying standalone credit ratings because rating agencies rate kicksim as a quasi government entity based on the government's extraordinary support and such judgment is based on the assessment that keksim's public policy mandate to support korea's export and import sectors strictly align with the objectives of the government and the next slide should give you an idea of what our general capital base looks like and the key takeaway here would be the regular capital injections by the korean government which demonstrates the importance of keksim as a economic policy arm so as you can see here the government has regularly injected capital to enhance our financial ability so if you look at the graph on the top right you can see the cumulative capital steadily increasing with recent contributions shown in the following table at the bottom left in 2020 alone kexton received capital injection amounting to 578 billion won uh 390 billion which has been earmarked for coven 19 response program and as of the first half of this year the common stock stands at 11.87 trillion won with a bis ratio of 13.6 percent and you may be wondering why our bis ratio has slightly decreased the first half of this year compared to last year so the reasons can be boiled down into two main parts so the first uh there was an increase in our covert 19 related loan exposure and two the appreciation of the us dollars at the time led to an increase in dollar denominated loan exposure so both of these reasons have led to an increase in our rwa or risk-weighted assets that made our bis ratio fall however as you can see here at the bottom right kicksim has always maintained a substantial buffer against the bis regulation threshold and this year was no exception now let's discuss keksim's policy mandate so as i mentioned our policy mandate focuses on supporting korean companies conducting international business with loans and guarantees whether that business is exports imports overseas investments and etc and out of these businesses we do play a especially pivotal role in promoting the nation's exports so the bar chart on the top right shows that kicksim has been consistently contributing over about 10 of korea's exports and in those exports our contribution is the highest in the shipbuilding and infrastructure project industrial sector so ship building and infrastructure projects basically require a large amount of funding for a long time period of time and this naturally this cannot be fully covered by a commercial banks alone and that is why kaksim along with many other ecas are there to finance these mega projects as one of our main businesses and if you take a break down our loans by geography you can see that our loan portfolio is well diversified by region so we have the us europe uh southeast asia middle east and et cetera okay so we've emphasized the fact that we are a very important policy arm in terms of the government implementing economic policies and recently the korean government's efforts to strengthen the economy were twofold so a uh to aid korean exporters in diversifying their markets to countries such as india vietnam russia uzbekistan etc to reduce our trade dependency on u.s and china and b to strengthen and promote new growth sectors like fintech biotech and future automobiles and as a policy arm kicksim has been expanding our financial support to these agendas so on this first bar chart you see here you can see that we have a substantial and growing exposure to southeast asia and india with our new southern policy and to mongolia and central asian countries with regards to our northern policy and we're currently very focused on targeting both regions as important export markets and kickstim is also fully on board with a new growth industries policy as well and as such our exposure in these industries have been rising rapidly the past couple of years and we believe that these industries will become a new growth engine that can vitalize the economy and diversify korea's export portfolio furthermore as more and more smes or small and medium-sized enterprises are making entrance into the global market we strive to facilitate these smes to strengthen their competitiveness alongside the government and from the bottom graph on the right you can see that the number of the companies we support and finance as well as the executed loan amount sharply increased over the past three years we don't just do smes we also do support large projects so recently we actually financed a 190 million pounds to the silver town tunnel ppp project in the united kingdom and 375 million dollars to the lng local faction plant construction project in okay nigeria now i will just go briefly over our asset portfolio so as of the first half of this year our loans get outstanding reached up to almost 80 trillion won and our guarantees outstanding amounted to 32 trillion won and when the exposure is broken down by industry you can see that ours is quite well diversified with industrial plans and ship building accounting for the largest percentage and the rest being mainly auto and other manufacturing sectors and when it comes to non-performing loans uh due to the stagnation in the shipbuilding industry in the past kixin's npl ratio in 2016 uh did reach its peak however the ratio dropped back to 1.5 percent in 2018 due to a decrease in refund guarantees uh to ship builders and write off of some of the bad assets and as you can see our npl ratio as of the first half of 2020 still remains at 1.5 percent and on the upper right you can find our profit figures so in 2016 we recorded a net loss for the first time because of the increase in provisions however right after 2016 we actually achieved a turnaround in profit with significant improvement in asset quality and made a net profit of approximately 0.3 trillion won in 2019 last year and finally the graph at the bottom right shows our net interest margin so as you know the recent low interest rate environment has been negatively influencing the overall banking industry's nim so hence the decreasing trend in our nim figure as well so although profitability is not our main mission we ensure you that we are keeping a close eye to maintain healthy profit margins so now we are on to the second part of the presentation our bond overview so here i would like to exhibit our most recent funding activities with the focus on this year uh so because we support international business of korean companies a substantial amount of our assets uh is in foreign currencies mostly in u.s dollars and we fund approximately 10 billion us dollars each year from the capital market and now because the funding size is pretty large it is crucial for us to secure diversity in terms of our investor base and funding markets which is why we visit various public markets each year so this year for example we've tapped into the euro the kangaroo and the usd dollar market and last year we've issued a mexican peso alongside a formosa bond in australian dollars and in terms of liability breakdown by currency kexim's loans to support korean companies are mostly in u.s dollars so to match the currency of our liability to that of our assets our non-usd bonds are swapped into usd so after the cross currency swap we hold around 74 percent of our liability in dollars and i guess this uh brings us to i guess the crown jewel of our presentation our public offerings for 2020. so our first public offering this year was amid the outbreak of coven 19. and despite the volatility and the uncertainty in the market we were able to secure a solid book order which represents strong investor demands for aaa credit ssa bonds here keksem accomplished the lowest spread among korean issuers excluding the rok since the global financial crisis in 2008 2009 and in april this is when the pandemic really hit the global market and uncertainty prevailed but keksim was able to successfully issue a usd and euro bond paving the way for other korean issuers to reopen funding in our global markets and our euro trench here actually was issued as a green bond and as a pioneer of green bonds in korea we have been revisiting the green bond market for the past five consecutive years and i'll cover this more in detail in our next slide in may we tapped into the kangaroo market which we visit on a annual basis and our offering this year was of 700 million 700 million australian dollars and was actually the first kangaroo bond from an asian issuer after the outbreak of coven 19. and it was also one of the few issuance where an offshore issuer has printed below the yield curve of the big four banks in australia then our most recent public offering was actually this september triple trans usd and euro global bond and it was well received by over 250 accounts including many central banks mdb sovereign wealth funds etc and the deal built up actually a book size of over five percent five times our target size which reaffirmed overseas investors confidence in kicks and bonds as a safe asset and here keksim achieved the lowest negative yield for a three-year euro in korea as well as the lowest yield and spread for a 10-year usd trench uh our euro tranche from september was a social bond in which we designated the proceeds from the euro tranche for use of sme support in response to coven 19. and last but not least along with our public offerings kexim is also very active with private placements so this year alone we've issued around 42 bonds in eight different currencies and this expands our bond portfolio to carry around 30 currencies and one of these private placements was actually korea's first so far bond which we hope can serve as a benchmark for prospective so far issuers in south korea and as i mentioned a little earlier kexim has been a steady player in the esg market ever since we issued korea's first green bond in 2013. so our green bond proceeds are used worldwide in various sectors as you can see on the bottom right and the proceeds are mostly engaged in projects for hydroelectric energy solar photovoltaic and secondary batteries now and this year was a little special for us because the euro trench of our most recent public offering was our debut in social bonds uh now through this coven 19 response social bond keksim intends to add advanced commitment in upholding sustainable initiatives through supporting smes affected by kovit19 and as such we hope to continuously uphold sustainable initiatives through supporting smes and communicate our continued dedication in these esg markets and as of now you can see that our current esg related liability accumulates to approximately 2.5 billion usd including our latest social bond and we plan on increasing that number with commitment to the esg agenda of the green and social bond principles okay finally this is our last slide it's the one that depicts keksem's strong presence in the international capital market and as a frequent issuer we aim towards setting a benchmark yield curve for korean papers and facilitating participation of other korean issuers in the market as i wrap up my presentation we kexin would like to assert two things so as one of the representative issuers here in korea one kickstand will hold itself accountable and procure right funding at the right time with a keen eye on the global market at all times and two keksim will strive to raise the status of korean issuers by our market-friendly and innovative strategies to target the global capital market even in such a volatile market as that of this year keksim really managed to pull through and have a very successful year by cleverly utilizing dual triple trenches esg labels and etc so we will continue to deliver the korean as well as the international debt capital market the same type of commitment and integrity you have seen from us in the future as well so thank you so much for your attention and if you have any questions please reach us throughout the bell and we will get back to you as soon as we can so thank you so much for listening