Chicago, Sept. 19 – Korea Housing Finance Corp. priced a €1 billion offering of 4.082% social covered bonds due 2027 (Aaa/AAA) on Tuesday, a sellside source said.
The bonds priced at par, or at mid-swaps plus 63 basis points, or at Bunds plus 125.3 bps.
Early guidance put the notes in the mid-swaps plus 65 bps area.
The company was hosting investor meetings on Monday.
Backing will come from Korean residential mortgages.
The deal will be a drawdown on the issuer’s $15 billion global covered bond program.
Standard Chartered Bank (billing and delivery), BNP Paribas, ING, Natixis and UBS Investment Bank are joint bookrunners and joint lead managers.
Proceeds will be used to facilitate access to housing finance for low- and middle-income earners in Korea.
The order book went over €1.45 billion.
The housing finance company is based in Seoul, South Korea.
| Issuer: | Korea Housing Finance Corp.
|
| Amount: | €1 billion
|
| Issue: | Social covered bonds
|
| Maturity: | Sept. 25, 2027
|
| Bookrunners: | Standard Chartered Bank (billing and delivery), BNP Paribas, ING, Natixis and UBS Investment Bank
|
| Co-manager: | Landesbank Baden-Wurttemberg
|
| Coupon: | 4.082%
|
| Price: | Par
|
| Yield: | 4.082%
|
| Spread: | Mid-swaps plus 63 bps, or Bunds plus 125.3 bps
|
| Trade date: | Sept. 19
|
| Settlement date: | Sept. 25
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 65 bps area
|
| Marketing: | Investor meetings
|
| ISIN: | XS2678945317
|
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