Korea Development Bank has raised €200 million through a tap of its €500 million five-year benchmark due in May 2018.
Demand from investors exceeded €300 million, according to one of the lead banks, which said that KDB chose to cut back accounts and print a smaller deal to leave room for the bonds to perform in secondary markets.
The tap priced at 98.799%, which represents a spread of 70bp over mid-swaps — in line with the original trade. It offers a coupon of 1.5%.
In all, 40 investors across Europe, Asia and the Middle East took part in the deal, with most interest coming from German, Austrian and French investors, which took 29.5 % each, followed by UK and Swiss accounts with 14% each. Asian investors bought 7%.
By investor type, asset managers accounted for 33% of the take-up, followed by banks and financial institutions with 30% and funds with 27%.
“Once again, KDB has proven its ability to re-act swiftly in any given market environment,” said Germany’s DZ Bank. “Furthermore, this transaction has underpinned KDB’s capability to re-open the market for other Korean issuers.”
Barclays, Credit Agricole CIB, DZ Bank and KDB were joint bookrunners.
KDB is the biggest policy bank in Korea. Alongside its policy role, KDB provides comprehensive corporate banking services to a wide range of clients in Korea and abroad.
It is rated Aa3 by Moody’s and AA- by Fitch.
