Tongues were wagging yesterday when HSBC announced the completion of two privately placed floating-rate notes for Korea Development Bank and Kexim under the issuersÆ EMTN programmes. The Koreans achieved remarkably tight pricing, reportedly causing borrowers across the region to quiz rival debt bankers about how the levels could be achieved in such bearish markets.
KDB placed its three-year $150 million FRN with a coupon of 70bp over Libor, pricing at par, while Kexim placed a five-year $100 million FRN with a coupon of 95bp over Libor. The issue price was not stated for Kexim, leading some observers to speculate that the deal was sold at a discount.
The pricing levels achieved by KDB and Kexim...
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