Four banks are set to lead manage a dollar and euro-denominated deal for KDB, with Credit Suisse First Boston appointed global co-ordinator and Barclays, HSBC and JPMorgan joint bookrunners. Roadshows are expected to begin at the end of this week taking in Singapore, the US and Europe ahead of pricing in the middle of next week.
KDB is said to remain flexible at how it will cut the deal, but has said it wants to issue in both dollars and euros. In order to maintain adequate liquidity it seems likely that it will do one tranche of each.
The euro-denominated deal is said likely to either be five or seven-years in maturity, while the dollar tranche may comprise a new 10-year deal, or a second re-opening of the bank's November 2012 bond.
During Asian trading yesterday (Monday), the 5.5% 2012 deal was being quoted to yield 4.68% bid, or 106bp over Treasuries. KDB's other main benchmark, due November 2007, was likewise quoted at 3.47% yield or 101bp over Treasuries.
Year-to-date, KDB has raised about $2 billion of its $4 billion fundraising requirement through a combination of dollar bonds, (a $500 million re-opening in January), Yen bonds (a $500 million equivalent Samurai) and the loan markets, where it has also raised roughly $1 billion.
Earlier this year, the bank's head of international funding, Bong-Sik Choi told FinanceAsia that KDB hoped to raise nearly double its normal fundraising requirement in 2003. This is because it wants to take advantage of low interest rates and re-pay a $2 billion ADB loan extended at the height of the financial crisis in 1998, which falls due in 2004.
Both the bank and its lead managers will be hoping to take advantage of a slightly stronger market tone for Korean paper after a couple of weeks of indigestion. The KDB 2012, for example, is now trading back towards its three-month average after hitting a high of 160bp over Treasuries. At its lowest, it was quoted at 89bp over.
