By Reshmi Basu
New York, Nov. 30 - The Republic of Korea placed a two-part offering of $1 billion equivalent in senior unsecured notes (A3/A/A+) on Thursday, which included $500 million of 10-year notes and €375 million of 15-year notes, according to an informed source.
The 10-year notes priced at 99.583 to yield 5.179%, or a spread of mid-swaps plus 22 basis points. That came at the tight end of revised price guidance of mid-swaps plus 22 to 24 bps, which was lowered from initial guidance of 23 to 26 bps.
Meanwhile the 15-year notes came at 99.902 to yield 4.259%, or a spread of mid-swaps plus 25 bps. The notes also priced at the tight end of revised guidance of 25 to 27 bps more than mid-swaps, which was lowered from initial talk of 26 to 29 bps.
The deal was more than two and a half times subscribed.
Barclays Capital, Citigroup, Credit Suisse and Korea Development Bank were joint bookrunners for the issues, which have been registered with the Securities and Exchange Commission.
The last time the sovereign came to market was in October 2005, when Korea priced $1 billion equivalent of bonds in dollar and euro tranches.
That transaction was comprised of a €500 million tranche of 3 5/8% bonds due November 2015, which priced at 25 bps spread to mid-swaps, and a $400 million tranche of 5 5/8% bonds due November 2025, which priced at a 95 bps spread to Treasuries.
Issuer: Republic of Korea
Issue: Two-part offering of dollar-denominated and euro-denominated senior unsecured notes
| Amount: | $1 billion equivalent
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 7
|
| Bookrunners: | Barclays Capital, Citigroup, Credit Suisse, Korea Development Bank
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A+
|
| Distributions: | Rule 144A and Regulation S
|
|
|
| 10-year tranche
|
| Amount: | $500 million
|
| Maturity: | Dec. 7, 2016
|
| Coupon: | 5 1/8%
|
| Issue price: | 99.583
|
| Yield: | 5.179%
|
| Spread: | Mid-swaps plus 22 bps
|
| Revised price guidance: | 22 to 24 bps more than mid-swaps
|
|
|
| 15-year tranche
|
| Amount: | €375 million
|
| Maturity: | Dec. 7, 2021
|
| Coupon: | 4¼%
|
| Issue price: | 99.902
|
| Yield: | 4.259%
|
| Spread: | Mid-swaps plus 25 bps
|
| Revised price guidance: | 25 to 27 bps more than mid-swaps
|
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