Chicago, Feb. 7 – Korea Development Bank released the terms on its $3 billion two-part offering (Aa2/AA/AA-), which priced on Tuesday, in an FWP filing with the Securities and Exchange Commission.
The deal included $1.75 billion of 4 5/8% notes with a three-year tenor. The notes were discounted to 99.839.
The second tranche priced as $1.25 billion of 4˝% notes due 2029, at 99.575.
Both tranches are non-callable.
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, a market source note.
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 order book was higher on the shorter tranche at $2.7 billion versus $2 billion for the longer tranche, according to a source.
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: | $3 billion
|
| Issue: | Notes
|
| Bookrunners: | 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
|
| Trustee: | Bank of New York Mellon as fiscal agent
|
| Counsel to issuer: | Cleary Gottlieb Steen & Hamilton LLP and Shin & Kim LLC
|
| Counsel to underwriters: | Linklaters LLP
|
| Call features: | Non-callable
|
| Trade date: | Feb. 6
|
| Settlement date: | Feb. 15
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Fitch: AA-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Feb. 15, 2027
|
| Coupon: | 4 5/8%
|
| Price: | 99.839
|
| Price talk: | SOFR mid-swaps plus 69 bps area; guided to 68 bps area
|
| Cusip: | 500630EC8
|
|
|
| Five-year notes
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| Amount: | $1.25 billion
|
| Maturity: | Feb. 15, 2029
|
| Coupon: | 4˝%
|
| Price: | 99.575
|
| Price talk: | SOFR mid-swaps plus 81 bps area; guided to 80 bps area
|
| Cusip: | 500630ED6
|
|
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