Kia Motors re-prices Korean yield curve

A tightly priced dollar issue by Kia Motors has set a precedent for the non-investment grade sector in Korea.
In what represents the first non-investment grade bond deal by a Korean corporate, Kia Motors has raised $200 million from international investors. A five-year fixed rate deal was priced last night Tuesday via lead manager Credit Suisse First Boston at nearly 200bp inside the comparably rated Korean sub debt sector.

Priced at 99.263%, a BB-Ba3-rated issue for Kia Motors carries a coupon of 9.375% to yield 9.564%, or 470bp over Treasuries. KDB Asia acted as co-lead.

At this level, investors were said to be attracted to the prospect of high yield from a credit many now feel comfortable with despite the fact that the company was placed into receivership only three years...

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