industrial-bank-of-korea-prices-1-billion-bond

Industrial Bank of Korea prices $1 billion bond

IBK becomes the sixth Korean borrower to tap the US dollar market this year.

The relentless invasion by South Korean borrowers into Asia's debt capital markets continues, reinforcing their domination of the territory.

Industrial Bank of Korea IBK, which is 51%-owned by the state, is the latest Korean issuer to bring a US dollar deal, pricing a $1 billion benchmark bond early this morning, Hong Kong time.

The bond pays a coupon of 7.125% and was priced at 99.265 to yield 7.303% to a maturity date of April 23, 2014. This translates into 500bp over mid-swaps or 556.6bp over the five-year US Treasury yield. Initial price guidance at the beginning of the week had indicated a range of 525bp-550bp over mid-swaps.

Prior to IBK's transaction, Korean issuers...

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