Industrial Bank of Korea (IBK) has raised $200 million via a syndicated loan arranged by five banks. The loan comprised two equal tranches with the two-year facility priced at 77.5 basis points (bp) over six-month Libor inclusive of fees and the three-year facility at a 82.5 bp premium. The facility was oversubscribed by 153% from the 26 banks involved in the syndication process.
The five banks that arranged the loan are Citicorp, Deutsche Bank, Dresdner Kleinwort Benson, Standard Chartered Bank and Tokyo-Mitsubishi.
IBK is the top lender to small and medium enterprises in Korea and is 97% owned by the Korean government. Over the last two years the Korean government has injected W1.9 trillion ($1.71 billion) into IBK.
IBK's long-term credit rating is Baa2 at Moody's and BBB- at Standard & Poor's. As of 30 June, IBK's net non-performing loans were 4.74% of its total loan exposure, down from 8.90% at end-1999. Net income this year is expected to be around W300 billion.