By Reshmi Basu
New York, Oct. 25 - Chohung Bank priced $400 million of 10-year subordinated debt in two tranches Monday, according to a market source.
The first tranche, comprised of $200 million 10-year lower tier II notes (Baa2/BBB-), priced at 99.779 to yield mid-swaps plus 93 basis points.
The lower tier II notes came in line with revised price guidance. Guidance had been tightened to mid-swaps plus 93 basis points from initial guidance of 95 to 100 basis points.
The second tranche of $200 million 10-year upper tier II notes (Baa2/BB+) priced at 99.669 to yield mid-swaps plus 108 basis points. The upper tier II notes came in line with revised price guidance of mid-swaps plus 108 basis points. Initial guidance had been set at mid-swaps plus 110 to 115 basis points.
The notes from both tranches are callable after five years.
Citigroup and UBS Investment Bank ran the books for the Rule 144A/Regulation S offering.
Chohung Bank, based in Seoul, South Korea, is a unit of Shinhan Financial Group.
| Issuer: | Chohung Bank
|
| Total amount: | $400 million
|
| Issue: | Subordinated notes
|
| Pricing date: | Oct. 25
|
| Settlement date: | Nov. 3
|
| Bookrunners: | Citigroup and UBS Investment Bank
|
|
|
| Tranche A
|
| Amount: | $200 million
|
| Issue: | Lower tier II
|
| Maturity: | Nov. 3, 2014
|
| Coupon: | 4.5%
|
| Issue price: | 99.779
|
| Yield: | 4.55%
|
| Call option: | Non-callable for five years (Nov. 3, 2009)
|
| Spread: | Mid-swaps plus 93 basis points
|
| 133.5 basis points over comparable Treasuries
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
|
|
| Tranche B
|
| Issue: | Upper tier II
|
| Amount: | $200 million
|
| Maturity: | Nov. 3, 2014
|
| Coupon: | 4.625%
|
| Issue price: | 99.669
|
| Yield: | 4.7%
|
| Call option: | Non-callable for five years (Nov. 3, 2009)
|
| Spread: | Mid-swaps plus 108 basis points
|
| 148.5 basis points over comparable Treasuries
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BB+
|
|
|
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