IBK prices deal to win investor satisfaction

IBK wants investors to know it is around for the long term and not trying to steal the next basis point.

In another deal from an Asian borrower that was heavily driven by Asia, Industrial Bank of Korea (IBK) priced an upsized deal that was two times oversubscribed.

The deal was a $400 million reg S transaction with a five year maturity.

The deal followed the Republic of Korea's deal last week and priced at T+136bp, equating to a coupon of 3.5%. The Republic priced at T+92. "IBK is very conscious of building a long term relationship with investors," says Young il Chun, head of international finance at IBK.

IBK had gone out with price guidance of 135-140bp and conducted one on one conference calls with investors. "IBK showed a lot of vision," said one banker. "In fact, IBK has an almost unique approach and is not trying to jaundice investor opinion by trying to get the next basis point with the ultra-tightest pricing. it's a unique approach."

To read more about IBK's "unique approach" read today's borrower Q&A on the capital markets newsletter which goes out in the afternoon in Asia.