By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Feb. 9 – Korea Development Bank issued $2 billion of notes in two tranches (Aa2/AA/AA-), according to an FWP filed with the Securities and Exchange Commission.
Both notes have 4 3/8% coupons.
The $1 billion 4 3/8% notes due Feb. 15, 2028 priced at 99.769, while the $1 billion 4 3/8% notes due Feb. 15, 2033 priced at 99.217.
The spread on the first tranche came at 60 basis points above Treasuries. Initial price talk was in the 105 bps area.
On the second tranche, the spread priced at 80 bps over Treasuries after talk started in the 120 bps area.
Australia and New Zealand Banking Group Ltd., Citigroup Global Markets Inc., JPMorgan Securities LLC, KB Securities Co., Ltd., KDB Asia Ltd., MUFG Securities EMEA plc, Nomura Singapore Ltd., Societe Generale and Standard Chartered Bank are the joint bookrunners and lead managers.
The proceeds will be used for the bank’s general operations, including extension of foreign currency loans and repayment of maturing debt and other obligations.
The notes will be listed on the Singapore Exchange.
The lender is based in Seoul, South Korea.
| Issuer: | Korea Development Bank
|
| Amount: | $2 billion
|
| Issue: | Notes
|
| Bookrunners: | Australia and New Zealand Banking Group Limited, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, KB Securities Co., Ltd., KDB Asia Limited, MUFG Securities EMEA plc, Nomura Singapore Limited, Societe Generale and Standard Chartered Bank
|
| Trustee: | Bank of New York Mellon as fiscal agent
|
| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP (New York law) and Shin & Kim LLC (Korean law)
|
| Counsel to bookrunners: | Linklaters LLP
|
| Pricing date: | Feb. 8
|
| Issue date: | Feb. 15
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Fitch: AA-
|
|
|
| 2028 notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2028
|
| Coupon: | 4 3/8%
|
| Price: | 99.769
|
| Spread: | Treasuries plus 60 bps
|
| Price talk: | Treasuries plus 105 bps area
|
| Cusip: | 500630DW5
|
|
|
| 2033 notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2033
|
| Coupon: | 4 3/8%
|
| Price: | 99.217
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | Treasuries plus 120 bps area
|
| Cusip: | 500630DX3
|
|
|
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