KB Kookmin Bank issued a four-year, €650 million sustainable covered bond, about 1 trillion won, at a 3.625% coupon and a 24bp spread over the euro mid-swap rate. The transaction was the largest euro-denominated sustainable covered bond ever issued by a South Korean commercial bank and carried the lowest spread among the bank's euro covered bonds. The spread was 12bp narrower than the 36bp premium on a bond of the same maturity issued last year. Institutional demand reached 1.5 times the planned issue size after the bank met more than 12 major investment institutions, including European central banks and international organizations, during a non-deal roadshow. High-quality mortgage loans were pledged as collateral, and S&P and Fitch assigned the bonds their highest rating of AAA. Proceeds will finance environmentally friendly businesses and social projects under KB Kookmin Bank's sustainable finance management framework.