Chicago, Oct. 5 – South Korea’s Kookmin Bank priced €500 million of 4% covered bonds due April 13, 2027 (AAA/AAA) on Thursday, according to a sellside source.
The bonds priced at 99.776 to yield 4.076%, or at mid-swaps plus 55 basis points.
Guidance, when books opened, was in the mid-swaps plus 58 bps area.
The bank met with investors and worked together on the tenor, which was expected to be between three and five years.
The bonds will be backed by Korean residential mortgages.
HSBC (billing and delivery), BNP Paribas, Commerzbank, Credit Agricole CIB, ING and Societe Generale are the joint bookrunners and joint lead managers for the Regulation S deal.
Orders came close to 2x deal size, reported at more than €925 million.
Proceeds will be used for general corporate purposes.
The lender is based in Seoul.
| Issuer: | Kookmin Bank
|
| Amount: | €500 million
|
| Issue: | Covered bonds
|
| Maturity: | April 13, 2027
|
| Bookrunners: | HSBC (billing and delivery), BNP Paribas, Commerzbank, Credit Agricole CIB, ING and Societe Generale
|
| Co-manager: | Helaba
|
| Coupon: | 4%
|
| Price: | 99.776
|
| Yield: | 4.076%
|
| Spread: | Mid-swaps plus 55 bps, Bunds plus 124.4 bps
|
| Trade date: | Oct. 5
|
| Settlement date: | Oct. 13
|
| Ratings: | S&P: AAA
|
| Fitch: AAA
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 58 bps area
|
| Marketing: | Investor meetings
|
| ISIN: | XS2681940370
|
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