By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Sept. 1 – Korea Development Bank sold a three-tranche offering of notes (Aa2/AA/AA-) in dollars and euros on Wednesday, according to an FWP filing with the Securities and Exchange Commission and additional information from a source.
The $1.45 billion in dollar-denominated notes consists of two tranches: $1 billion of 4% notes due 2025 and $450 million of 4¼% notes due 2032.
The 2025 notes were sold at 99.838. They priced at with a spread of 60 basis points over Treasuries after price talk in the Treasuries plus 90 bps area.
The 2032 notes sold at 99.814. They priced at with a spread of 115 basis points over Treasuries after price talk in the Treasuries plus 140 bps area.
The euro-denominated tranche consists of €500 million of 2 5/8% notes due 2027 which priced at 99.88.
As previously reported, all of the tranches are non-callable and will be listed on the Singapore Exchange.
BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse (Hong Kong) Ltd., HSBC Ltd., ING Financial Markets LLC and KDB Asia Ltd. were bookrunners for the dollar notes.
Merrill Lynch International, Citigroup Global Markets Ltd., Credit Agricole CIB, Credit Suisse (Hong Kong) Ltd., HSBC Ltd., ING Bank NV and KDB Asia Ltd. were bookrunners for the euro notes.
Proceeds from the offering will be used for general operations, including extension of foreign currency loans and repayment of maturing debt.
The deal started as a four-tranche offer with a tranche of floating-rate notes that was not reported when the deal priced.
The lender is based in Seoul, South Korea.
| Issuer: | Korea Development Bank
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| Amount: | $1.45 billion, €500 million
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| Issue: | Notes
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| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP and Lee & Ko
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| Counsel to bookrunners: | Linklaters LLP
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| Call: | Non-callable
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| Trade date: | Aug. 31
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| Ratings: | Moody’s: Aa2
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| S&P: AA
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| Fitch: AA-
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| Distribution: | SEC-registered
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| 2025 notes
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| Amount: | $1 billion
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| Maturity: | Sept. 8, 2025
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse (Hong Kong) Ltd., HSBC Ltd., ING Financial Markets LLC and KDB Asia Ltd.
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| Coupon: | 4%
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| Price: | 99.838
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| Spread: | Treasuries plus 60 bps
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| Price talk: | Treasuries plus 90 bps area
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| Cusip: | 500630DT2
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| 2032 notes
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| Amount: | $450 million
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| Maturity: | Sept. 8, 2032
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse (Hong Kong) Ltd., HSBC Ltd., ING Financial Markets LLC and KDB Asia Ltd.
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| Coupon: | 4¼%
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| Price: | 99.814
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| Spread: | Treasuries plus 115 bps
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| Price talk: | Treasuries plus 140 bps area
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| Cusip: | 500630DU9
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| 2027 notes
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| Amount: | €500 million
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| Maturity: | Sept. 8, 2027
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| Bookrunners: | Merrill Lynch International, Citigroup Global Markets Ltd., Credit Agricole CIB, Credit Suisse (Hong Kong) Ltd., HSBC Ltd., ING Bank NV and KDB Asia Ltd.
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| Coupon: | 2 5/8%
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| Price: | 99.88
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| ISIN: | XS2529713435
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