By Rebecca Melvin
Concord, N.H., Oct. 13 – South Korea’s KB Kookmin Bank priced €500 million 0.048% five-year green covered bonds (AAA/AAA) at par for a yield of mid-swaps plus 14 basis points, according to a syndicate source on Wednesday.
Pricing came below initial price thoughts for yield of mid-swaps plus 18 bps area. Later, the deal was guided to the mid-swaps plus 15 bps area when order books were in excess of €1.2 billion.
BNP Paribas, Citigroup, Credit Suisse, ING, JPMorgan and KB Securities were joint lead managers of the Regulation S deal.
The covered bond is backed by Korean residential mortgages.
Kookmin Bank is a lender based in Seoul.
| Issuer: | KB Kookmin Bank
|
| Issue: | Green covered bonds
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| Amount: | €500 million
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| Maturity: | Oct. 19, 2026
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| Bookrunners: | BNP Paribas, Citigroup, Credit Suisse, ING, JPMorgan and KB Securities
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| Coupon: | 0.048%
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| Price: | Par
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| Yield: | 0.048%
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| Spread: | Mid-swaps plus 14 bps
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| Pricing date: | Oct. 13
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| Settlement date: | Oct. 19
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| Expected ratings: | S&P: AAA
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| Fitch: AAA
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| Distribution: | Regulation S
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| Price talk: | Mid-swaps plus 15 bps area, tightened from mid-swaps plus 18 bps area
|
| ISIN: | XS2393768788
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