Kookmin prices $500 million three-year dollar bond

Korea’s largest bank by both asset value and market capitalisation has launched the pricing of a three-year floating rate note.

Kookmin Bank has priced a $500 million three-year floating rate note, following in the footsteps of Kexim, a South Korean policy bank, which issued one last month.

The note which was six-times oversubscribed from 150 accounts had an initial price guidance of about 140bp above the three-month US dollar Libor but priced competitively inside its existing curve at 125bp, indicating strong demand for these rare notes.

The bond was being compared to two outstanding comparables  Kookmin’s 2016s and 2017s, both of which had a Z-spread of 120bp and 142bp. After adjusting for the curve, fair value of the new bond is 136bp, notes one source.

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