By Rebecca Melvin
New York, July 8 – South Korea’s Kookmin Bank priced €500 million of five-year sustainability covered bonds (AAA/AAA) at par on Wednesday with a coupon of 0.052%, according to a syndicate source.
The Regulation S bonds priced at a spread of 40 basis points over mid-swaps, which was below initial price thoughts for pricing at mid-swaps plus high 40s bps. Later, the deal was guided to the mid-swaps plus 45 bps area when order books were in excess of €1.6 billion at that time.
BNP Paribas, Citigroup, Credit Agricole CIB, JPMorgan, HSBC and Societe Generale were joint bookrunners of the deal.
The proceeds will be used to provide loans or refinance loans, which fall under one or more of the green eligible categories or the social eligible categories of the lender’s sustainability framework. Part of the proceeds may also be used to mitigate the adverse effects of the Covid-19 pandemic response.
Kookmin Bank is a lender based in Seoul.
| Issuer: | Kookmin Bank
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| Issue: | Fixed-rate covered bond
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| Amount: | €500 million
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| Maturity: | July 15, 2025
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| Bookrunners: | BNP Paribas, Citigroup, Credit Agricole CIB, JPMorgan, HSBC and Societe Generale
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| Coupon: | 0.052%
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| Price: | Par
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| Yield: | 0.052%
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| Spread: | Mid-swaps plus 40 bps
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| Pricing date: | July 8
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| Settlement date: | July 15
|
| Expected ratings: | S&P: AAA
|
| Fitch: AAA
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus high 40 bps
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