Korea Development Bank tightens guidance on two-part bond offering

Chicago, Feb. 6 – Korea Development Bank’s two-part offering of dollar-denominated fixed-rate notes (Aa2/AA/AA-) was in the Tuesday market, according to a market source.

Books opened on three-year bonds and five-year bonds with price guidance tightened from initial talk that was released on Monday.

Guidance was at the SOFR mid-swaps plus 68 basis points area, plus or minus 2 bps, for the three-year bonds, tighter than Monday when they were in the 69 bps area, plus or minus 5 bps.

For the five-year bonds, guidance shifted lower to the SOFR mid-swaps plus 80 bps area, 2 bps more or less, from the 81 bps area with a 5 bps variance.

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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