KFB re-prices curve

Korea First Bank (KFB) priced an increased $300 million hybrid tier 1 deal well through expectations during New York's afternoon on Wednesday. For the Newbridge-controlled bank, it must have been a particularly satisfying result after a fairly miserable 2003 when unlucky timing conspired against both of its previous two subordinated debt issues. This time round, benign market conditions allowed KFB's credit ratios to shine through and as fund managers started to re-focus on the bank's fundamentals, its credit curve was pulled in. The deal was also helped by the news that Citigroup is to purchase Koram bank from Newbridge's fellow private equity investor Carlyle group. The move has led to a 60bp to 70bp tightening of Koram's sub debt spreads over the past couple of weeks.