Korea’s Kexim launches $2.08 billion of notes in three tranches; pricing expected Tuesday

By Rebecca Melvin

New York, Oct. 24 – The Export-Import Bank of Korea launched a combined $2.08 billion of notes (expected ratings: Aa2/AA/AA-) in three tranches on Tuesday.

The offering includes a $400 million tranche of three-year fixed-rate notes, a $1.08 billion tranche of five-year fixed-rate notes and a $600 million tranche of five-year floating-rate notes, according to a market source.

Orders were in excess of $2.5 billion for the Securities and Exchange Commission-registered deals, which were expected to price on Tuesday.

The three-year tranche was expected to price at a yield of U.S. Treasuries plus 90 basis points, which was revised down from earlier talk of Treasuries plus 90 bps to 95 bps yield.

The five-year fixed-rate notes were launched at Treasuries plus 100 bps.

The five-year floating-rate tranche was launched at Libor plus 92.5 bps.

Joint bookrunners and lead managers are BofA Merrill Lynch, BNP Paribas, Citigroup, Credit Agricole CIB, MUFG, with Mirae Asset Daewoo also acting as a joint lead managers. Kexim Asia Ltd. is acting as co-manager.

The proceeds will be used for general operations, including extending foreign currency loans, repayment of debt and other obligations.

Application is being made to list the notes on the SGX-ST.

The lender is based in Seoul.

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