KoFC debuts with $750 million bond

Korea Finance Corporation almost overshoots the mark by choosing to aggressively price 16bp inside the recent KDB 2016 bonds on a mid-swaps basis.

Korea’s youngest policy bank, Korea Finance Corporation KoFC, debuted in the international bond markets early Thursday morning with the pricing of a $750 million six-year bond. The notes, which were issued under its $10 billion medium-term note programme, were well received by a market that had been anticipating a deal since the borrower went on the road in May.

The senior unsecured notes pay a 3.25% fixed-rate coupon. They were reoffered at 99.867 to yield 3.273%. This was equivalent to a spread of 182.5bp over the five-year US Treasury yield, or 134bp on a mid-swaps basis. The maturity date has been set to September 20, 2016.

In a sector that has been...

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