New primary CBO launched from Korea

Marketing began yesterday for a $350 million primary collateralized bond obligation (CBO) backed by a portfolio of bonds and warrants issued by Korean small and medium-sized enterprises. Hannuri Investment & Securities, a domestic Korean house, is acting as arranger and joint lead manager on the transaction with BNP Paribas as joint lead and sole-bookrunner for the $266 million of rated senior notes. It is the first ex-Japan Asia securitization mandate that BNP has been involved with.