Pricing Supplement THE EXPORT-IMPORT BANK OF KOREA Issue of CNY 1,250,000,000 Fixed Rate Notes due 2018 under the U.S.$25,000,000,000 Euro Medium Term Note Programme THE NOTES TO WHICH THIS PRICING SUPPLEMENT RELATES HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT ), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT), EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. ACCORDINGLY, THE NOTES WILL BE OFFERED AND SOLD ONLY OUTSIDE THE UNITED STATES TO NON-U.S. PERSONS IN RELIANCE ON REGULATION S. IN CONNECTION WITH THIS ISSUE, THE STABILISING MANAGER (OR ANY PERSON ACTING ON BEHALF OF ANY STABILISING MANAGER) MAY OVER-ALLOT OR EFFECT TRANSACTIONS WITH A VIEW TO SUPPORTING THE MARKET PRICE OF THE NOTES AT A LEVEL HIGHER THAN THAT WHICH MIGHT OTHERWISE PREVAIL FOR A LIMITED PERIOD AFTER THE ISSUE DATE. HOWEVER, THERE MAY BE NO OBLIGATION ON THE STABILISING MANAGER (OR ANY PERSON ACTING ON BEHALF OF ANY STABILISING MANAGER) TO DO THIS. SUCH STABILISING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME, AND MUST BE BROUGHT TO AN END AFTER A LIMITED PERIOD. SUCH STABILISING SHALL BE IN COMPLIANCE WITH ALL APPLICABLE LAWS, REGULATIONS AND RULES. Joint Bookrunners and Lead Managers HSBC Bank of China The date of this Pricing Supplement is 5 June 2015
The Export-Import Bank of Korea Issue of CNY 1,250,000,000 Fixed Rate Notes due 2018 under the U.S.$25,000,000,000 Euro Medium Term Note Programme This document constitutes the Pricing Supplement relating to the issue of Notes described herein. The terms and conditions of the Notes (the Conditions ) shall consist of the terms and conditions set out in the offering circular dated 23 April 2015 (the Offering Circular ) as amended and supplemented below. Terms used herein shall be deemed to be defined as such for the purposes of the Conditions set forth in the Offering Circular. This Pricing Supplement must be read in conjunction with such Offering Circular. 1. Issuer: The Export-Import Bank of Korea 2. (i) Series Number: 1506_CNH1.25B_57_810(HSBC) (ii) Tranche Number: 1 3. Specified Currency or Currencies: Chinese Yuan (Offshore) ( CNY ), being the Chinese Yuan, the lawful currency of the People s Republic of China ( PRC ) that is being traded and settled offshore. 4. Aggregate Nominal Amount: (i) Series: CNY 1,250,000,000 (ii) Tranche: CNY 1,250,000,000 5. (i) Issue Price: 100 per cent. of the Aggregate Nominal Amount (ii) Net Proceeds (after deducting a combined management and underwriting commission but not estimated expenses): CNY 1,248,125,000 6. Specified Denominations: CNY 1,000,000 with integral multiples of CNY 1,000 in excess thereof 7. (i) Issue Date: 10 June 2015 (ii) Interest Commencement Date (if different from the Issue Date): 10 June 2015 8. Maturity Date: 10 June 2018 9. Interest Basis: per cent. Fixed Rate (further particulars specified below) 10. Redemption/Payment Basis: Redemption at 100 per cent. (further particular specified below) 11. Change of Interest or Redemption/Payment P-2
Basis: 12. Put/Call Options: 13. Listing: Singapore Exchange Securities Trading Limited ( SGX-ST ) 14. Method of distribution: Syndicated PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE 15. Fixed Rate Note Provisions Applicable (i) Rate of Interest: (ii) Interest Payment Date(s): (iii) Fixed Coupon Amount(s): 3.60 per cent. per annum payable semi-annually in arrear 10 June and 10 December in each year (up to and including the Maturity Date), commencing on 10 December 2015, subject to adjustment in accordance with the Modified Following Business Day Convention. In respect of each Specified Denomination, an amount in accordance with the following formula: (CNY 1,000 x 3.60 per cent. x Day Count Fraction) (iv) Day Count Fraction: Actual/365 (Fixed) Calculation Period means the period from (and including) the Issue Date up to (but excluding) the first Interest Payment Date and each successive period beginning on (and including) an Interest Payment Date and ending on (but excluding) the next succeeding Interest Payment Date up to the Maturity Date, in each case, subject to adjustment in accordance with the Modified Following Business Day Convention. (v) Broken Amount(s): (vi) Other terms relating to the method of calculating interest for Fixed Rate/ Variable Coupon Amount Notes: 16. Floating Rate Note Provisions 17. Zero Coupon Note Provisions 18. Dual Currency Note Provisions P-3
PROVISIONS RELATING TO REDEMPTION 19. Call Option 20. Put Option 21. Redemption Amount (at maturity) Redemption at par 22. Redemption for Taxation Reasons (i) Redemption for Taxation Reasons permitted on days other than Interest Payment Dates: Yes (ii) Redemption Amount(s) payable on redemption for taxation reasons or on event of default and/or the method of calculating the same (if required or if different from that set out in the Conditions): GENERAL PROVISIONS APPLICABLE TO THE NOTES 23. Form of Notes: Registered Notes 24. Additional Financial Centre(s) or other special provisions relating to Payment Dates: 25. Talons for future Coupons or Receipts to be attached to Definitive Notes (and dates on which such Talons mature): 26. Details relating to Instalment Notes: Instalment Date(s); Instalment Amount(s): 27. Redenomination, renominalisation and reconventioning provisions: New York City, Hong Kong, London, Seoul 28. Consolidation provisions: 29. Other terms or special conditions: DISTRIBUTION 30. (i) If syndicated, names of Managers: The Hongkong and Shanghai Banking Corporation Limited Bank of China Limited (ii) Stabilising Manager(s) (if any): The Hongkong and Shanghai Banking Corporation Limited P-4
31. If non-syndicated, name of Dealer/Manager: 32. TEFRA: 33. Additional selling restrictions: People s Republic of China Each of the Managers has represented, warranted and agreed that it has not offered or sold and will not offer or sell the Notes, directly or indirectly, in the People's Republic of China (for such purposes, not including the Hong Kong and Macau Special Administrative Regions or Taiwan), except as permitted by the securities laws of the People's Republic of China. OPERATIONAL INFORMATION 34. ISIN Code: XS1243364731 35. Common Code: 124336473 36. CUSIP: 37. Any clearing system(s) other than Euroclear, Clearstream, Luxembourg and DTC and the relevant identification number(s): Euroclear and Clearstream, Luxembourg 38. Delivery: Delivery against payment 39. Additional Paying Agent(s) (if any): 40. Additional Registrar (if any): LISTING APPLICATION This Pricing Supplement comprises the details required to list the issue of Notes described herein pursuant to the U.S.$25,000,000,000 Euro Medium Term Note Programme of the Export-Import Bank of Korea. The SGX-ST assumes no responsibility for any of the statements made, reports contained or opinions expressed in this Pricing Supplement. Admission of the Notes to the Official List of the SGX-ST is not to be taken as an indication of the merits of the Issuer or the Notes. P-5
ANNEX RISK FACTORS RELATING TO THE NOTES The CNY is not freely convertible; there are significant restrictions on the remittance of CNY into and outside the PRC The CNY is not freely convertible at present. The PRC government continues to regulate conversion between the CNY and foreign currencies, including the Hong Kong dollar, despite the significant reduction over the years by the PRC government of control over routine foreign exchange transactions under current accounts. Participating banks in Hong Kong have been permitted to engage in the settlement of CNY trade transactions under a pilot scheme introduced in July 2009. This represents a current account activity. The pilot scheme was extended in August 2011 to cover all provinces and cities in the PRC and to make CNY trade and other current account settlements available in all countries worldwide. The CNY trade settlements under the pilot scheme have become one of the most significant sources of CNY funding in Hong Kong. The PRC government continues to promulgate regulations concerning the remittance of CNY into and outside of PRC. In 2011, Ministry of Commerce of the PRC ( MOFCOM ) and People s Bank of China ( PBOC ) promulgated various regulations and measures concerning foreign investment management, cross-border CNY settlement and foreign direct investment. There is no assurance that the PRC government will continue to gradually liberalise the control over cross-border CNY remittances in the future, that the pilot scheme introduced in July 2009 will not be discontinued or that new PRC regulations will not be promulgated in the future which have the effect of restricting or eliminating the remittance of CNY into or outside PRC. If it becomes impossible to convert CNY from or to another freely convertible currency, or transfer CNY between accounts in Hong Kong, or the general CNY exchange market in Hong Kong becomes illiquid, or any CNY clearing and settlement system for participating banks in Hong Kong is disrupted or suspended, the Issuer may make any payment of CNY under the Notes in another currency selected by the Issuer using an exchange rate determined by the Calculation Agent. Investors may be required to provide certifications and other information (including Renminbi account information) in order to be allowed to receive payments in Renminbi in accordance with the Renminbi clearing and settlement system for participating banks in Hong Kong. There is only limited availability of CNY outside the PRC, which may affect the liquidity of the Notes and the Issuer's ability to source CNY outside PRC to service the Notes As a result of the restrictions by the PRC government on cross-border CNY fund flows, the availability of CNY outside of the PRC is limited. Since February 2004, in accordance with arrangements between the PRC central government and the Hong Kong government, licensed banks in Hong Kong may offer limited CNY-denominated banking services to Hong Kong residents and designated business customers. The PBOC has also established a CNY clearing and settlement mechanism for participating banks in Hong Kong. On 19 July 2010, further amendments were made to the Settlement Agreement on the Clearing of RMB Business (the Settlement Agreement ) between the PBOC and Bank of China (Hong Kong) Limited (the RMB Clearing Bank ) to further expand the scope of CNY business for participating banks in Hong Kong. Pursuant to the revised arrangements, all corporations are allowed to open CNY accounts in Hong Kong; there is no longer any limit on the ability of corporations to convert CNY; and there will no longer be any restriction on the transfer of CNY funds between different accounts in Hong Kong. P-7
However, the current size of CNY-denominated financial assets outside the PRC is limited. In addition, participating banks are also required by the Hong Kong Monetary Authority to maintain a total amount of CNY (in the form of its settlement account balance and/or fiduciary account balance with the RMB Clearing Bank) of no less than 25 per cent. of their CNY deposits, which further limits the availability of CNY that participating banks can utilise for conversion services for their customers. CNY business participating banks do not have direct CNY liquidity support from the PBOC. They are only allowed to square their open positions with the RMB Clearing Bank after consolidating the CNY trade position of banks outside Hong Kong that are in the same bank group of the participating banks concerned with their own trade position, and the RMB Clearing Bank only has access to onshore liquidity support from the PBOC only for the purpose of squaring open positions of participating banks for limited types of transactions, including open positions resulting from conversion services for corporations in relation to cross-border trade settlement and for individual customers of up to CNY 20,000 per person per day and for the designated business customers relating to the CNY received in providing their services. The RMB Clearing Bank is not obliged to square for participating banks any open positions resulting from other foreign exchange transactions or conversion services and the participating banks will need to source CNY from the offshore market to square such open positions. Although it is expected that the offshore CNY market will continue to grow in depth and size, its growth is subject to many constraints as a result of PRC laws and regulations on foreign exchange. There is no assurance that new PRC regulations will not be promulgated or the Settlement Agreement will not be terminated or amended in the future which will have the effect of restricting availability of CNY offshore. The limited availability of CNY outside the PRC may affect the liquidity of the Notes. To the extent The Issuer is required to source CNY in the offshore market to service the Notes, there is no assurance that the Issuer will be able to source such CNY on satisfactory terms, if at all. Investment in the Notes is subject to exchange rate risks. The value of CNY against the U.S. dollar and other foreign currencies fluctuates from time to time and is affected by changes in the PRC and international political and economic conditions as well as many other factors. Depreciation of CNY against the U.S. dollar may adversely affect the market value of the Notes. Investment in the Notes is subject to interest rate risks. The PRC government has gradually liberalised its regulation of interest rates in recent years. Further liberalisation may increase interest rate volatility. Consequently, the trading price of the Notes will vary with the fluctuations in the CNY interest rates. If holders of the Notes propose to sell their Notes before their maturity, they may receive an offer lower than the amount they have invested. Investors should contact their own financial, legal, accounting and tax advisers about the risks associated with an investment in these Notes, the appropriate tools to analyse that investment, and the suitability of the investment in each investor's particular circumstances. No investor should purchase the Notes unless that investor understands and has sufficient financial resources to bear the price, market liquidity, structure and other risks associated with an investment in these Notes. Before entering into any transaction, investors should ensure that they fully understand the potential risks and rewards of that transaction and independently determine that the transaction is appropriate given their objectives, experience, financial and operational resources and other relevant circumstances. Investors should consider consulting with such advisers as they deem necessary to assist them in making these determinations. P-8