Korea Exchange Bank KEB sold a $200 million 10-year Basel II-compliant Tier 2 subordinated note on Thursday as market conditions improved after the 16-day US government shutdown ended.
The bond with a coupon of 4.625% - is expected to be South Korea’s last Basel II-compliant bond as the nation shifts towards adopting Basel III rules in December.
It priced 30bp tighter than its initial price guidance of 235bp above Treasuries, indicating strong demand for the old-style instrument that is being phased out, according to a source. The nearest comparables for KEB’s note was Woori Bank’s 2021s that had a G-spread of 212bp over Treasuries....
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