Korea Development Bank has raised €200 million through a tap of its €500 million five-year benchmark due in May 2018.
Demand from investors exceeded €300 million, according to one of the lead banks, which said that KDB chose to cut back accounts and print a smaller deal to leave room for the bonds to perform in secondary markets.
The tap priced at 98.799%, which represents a spread of 70bp over mid-swaps — in line with the original trade. It offers a coupon of 1.5%.
In all, 40 investors across Europe, Asia and the Middle East took part in the deal, with most interest coming from German, Austrian and French investors, which took 29.5 % each, followed by UK and Swiss accounts with 14% each. Asian investors bought 7%.
By investor type, asset managers accounted for 33% of the take-up, followed by banks and financial institutions with 30% and funds with 27%.
“Once again, KDB has proven its ability to re-act swiftly in any given market environment,” said Germany’s DZ Bank. “Furthermore, this transaction has underpinned KDB’s capability to re-open the market for other Korean issuers.”
KDB is the biggest policy bank in Korea. Alongside its policy role, KDB provides comprehensive corporate banking services to a wide range of clients in Korea and abroad.
It is rated Aa3 by Moody’s and AA- by Fitch.