Korea Development Bank to price two-part bond offering on Tuesday; price talk emerges

Chicago, Feb. 5 – Korea Development Bank expects to price its new two-tranche offering of dollar-denominated fixed-rate notes (Aa2/AA/AA-) on Tuesday, according to a market source.

The deal has been in the offing since Feb. 1.

Price talk, released on Monday, is in the SOFR mid-swaps plus 69 basis points area on a three-year bonds and in the SOFR mid-swaps plus 81 bps area on a five-year bonds. The area on talk is defined as plus or minus 5 bps, and the bonds are expected to price within those ranges.

Both tranches are non-callable and will be listed on the Singapore Exchange, in London and the euro MTF market of the Luxembourg Stock Exchange.

HSBC (billing and delivery), Citigroup Global Markets Ltd., ING Financial Markets LLC, KB Securities Co., Ltd., KDB Asia Ltd., MUFG Securities Asia Ltd. and Societe Generale are the joint bookrunners and lead managers.

The fiscal agent is Bank of New York Mellon.

Cleary Gottlieb Steen & Hamilton LLP and Shin & Kim LLC are counsel to the issuer with Linklaters LLP as counsel to the underwriters.

Proceeds from the offering will be used for general operations, including extension of foreign currency loans and repayment of maturing debt.

Settlement is expected on Feb. 15.

The lender is based in Seoul, South Korea.

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