The state-run Export-Import Bank of Korea (Exim Bank) said Tuesday that it has issued $1.5 billion worth of bonds to foreign investors.

Exim Bank has sold three-year bonds worth 500 million euros, $400 million in five-year dollar bonds and $500 million in dollar bonds that will mature in 10 years.

The euro-denominated social bonds carry a yield of minus 0.118 percent, the lowest interest rate offered by South Korean institutions, the state lender said.

A negative bond yield means that an investor earns less money than the original purchase price when the bond matures.

The five-year dollar bonds carry a yield of 0.758 percent, and the 10-year dollar debt yields 1.316 percent, the lowest return offered by local institutions since the 2008 global financial crisis.

The state trade bank said the bond sale drew bids 5.1 times the proposed amount, adding the proceeds will be used to support coronavirus-hit smaller companies and finance the Korean-version New Deal project aimed at spurring the economy.

The Exim Bank said it has succeeded in attracting strong interest from foreign investors by actively capitalizing on South Korea's recent sale of euro-denominated foreign exchange stabilization bonds at a negative yield.

Last week, Seoul issued bonds worth $625 million and 700 million euros for its foreign exchange stabilization scheme. The 10-year dollar-denominated bonds carry a yield of 1.198 percent, while the five-year euro-denominated bonds carry a yield of minus 0.059 percent. It was the first time that a non-European nation sold euro-denominated bonds with a negative yield. (Yonhap)