By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Oct. 17 – Korea Development Bank priced a $2 billion four-tranche offering of fixed- and floating-rate notes (Aa2/AA/AA-) on Monday, according to an FWP filed with the Securities and Exchange Commission and a market source.
The offering consists of a $300 million tranche of floating-rate notes due Oct. 23, 2026, which will bear interest at SOFR plus 70 basis points. The floaters priced at par.
Additionally, the bank priced three tranches of fixed-rate notes.
The $700 million of 5 3/8% three-year notes priced at 99.885, or at 55 bps over Treasuries after being talked in the Treasuries plus 90 bps area.
A $500 million tranche of 5 3/8% five-year notes priced at 99.602, or at Treasuries plus 75 bps. Price talk was in the Treasuries plus 105 bps area.
Finally, the $500 million of 5 5/8% 10-year notes priced at 99.713, or at 94 bps above Treasuries after talk in the Treasuries plus 120 bps area.
All the tranches are non-callable and will be listed on the Singapore Exchange.
Proceeds from the offering will be used for general operations, including extension of foreign currency loans and repayment of maturing debt.
The lender is based in Seoul, South Korea.
| Issuer: | Korea Development Bank
|
| Amount: | $2 billion
|
| Issue: | Notes
|
| Bookrunners: | BofA Securities, Inc., Credit Agricole CIB, HSBC Ltd., J.P. Morgan Securities plc, KDB Asia Ltd., Mizuho Securities USA LLC and UBS AG Hong Kong Branch
|
| Co-managers: | Hana Securities Co., Ltd. and Kexim Asia Ltd.
|
| Fiscal agent: | Bank of New York Mellon
|
| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP and Shin & Kim LLC
|
| Counsel to underwriters: | Linklaters LLP
|
| Trade date: | Oct. 16
|
| Settlement date: | Oct. 23
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Fitch: AA-
|
|
|
| Floating-rate notes
|
| Amount: | $300 million
|
| Maturity: | Oct. 23, 2026
|
| Coupon: | SOFR plus 70 bps
|
| Price: | Par
|
| Yield: | SOFR plus 70 bps
|
| Price talk: | SOFR plus equivalent
|
| Cusip: | 500630DY1
|
|
|
| 2026 notes
|
| Amount: | $700 million
|
| Maturity: | Oct. 23, 2026
|
| Coupon: | 5 3/8%
|
| Price: | 99.885
|
| Spread: | Treasuries plus 55 bps
|
| Price talk: | Treasuries plus 90 bps area
|
| Cusip: | 500630DZ8
|
|
|
| 2028 notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 23, 2028
|
| Coupon: | 5 3/8%
|
| Price: | 99.602
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 105 bps area
|
| Cusip: | 500630EA2
|
|
|
| 2033 notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 23, 2033
|
| Coupon: | 5 5/8%
|
| Price: | 99.713
|
| Spread: | Treasuries plus 94 bps
|
| Price talk: | Treasuries plus 120 bps area
|
| Cusip: | 500630EB0
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
