New Issue: Korea Development Bank prices $1.5 billion of notes due 2021, 2026

By Christine Van Dusen

Atlanta, Jan. 6 – Korea Development Bank priced a combined $1.5 billion of five- and 10-year notes (expected ratings: Aa2/AA-/AA-) on Wednesday, a market source said.

The $500 million 2½% five-year notes priced at 99.986 to yield 2.503%, or Treasuries plus 82.5 basis points, following talk in the 85 bps area.

The $1 billion 3% 10-year notes priced at 99.401 to yield 3.07%, or Treasuries plus 87.5 bps, after talk in the 90 bps area.

Barclays, BofA Merrill Lynch, Citigroup, Credit Suisse, HSBC, KBD Asia, Mizuho Securities and Societe Generale were the bookrunners for the Regulation S deal.

The proceeds will be used for general operations, including the extension of foreign currency loans and the repayment of maturing debt and other obligations, according to a company filing.

Issuer:	Korea Development Bank
Amount:	$1.5 billion
Description:	Notes
Bookrunners:	Barclays, BofA Merrill Lynch, Citigroup, Credit Suisse, HSBC, KBD Asia, Mizuho Securities, Societe Generale
Trade date:	Jan. 6
Settlement date:	Jan. 13
Expected ratings:	Moody's: Aa2
	Standard & Poor's: AA-
	Fitch: AA-
Distribution:	Regulation S
Five-year notes
Amount:	$500 million
Maturity:	Jan. 13, 2021
Coupon:	2½%
Price:	99.986
Yield:	2.503%
Spread:	Treasuries plus 82.5 bps
Price talk:	Treasuries plus 85 bps area
10-year notes
Amount:	$1 billion
Maturity:	Jan. 13, 2026
Coupon:	3%
Price:	99.401
Yield:	3.07%
Spread:	Treasuries plus 87.5 bps
Price talk:	Treasuries plus 90 bps area

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