Kookmin’s latest bond offers value

The Korean bank’s latest dollar bond offers attractive returns when compared to existing comparables but only if pricing doesn’t tighten excessively.

Kookmin Bank is marketing a dollar-denominated senior unsecured bond maturing in three years, offering bondholders attractive value as US investors return from Friday's Independence Day break.

According to a term sheet seen by FinanceAsia on Monday, Korea’s largest bank by assets is selling its new 144AReg S-registered notes at Treasury plus a spread of around 85bp. With the US Treasury three-year bond trading at a yield of approximately 0.98%, this works out to a yield of 1.83% on the new issue.

In spread terms, Kookmin’s new offering is about 15bp to 30bp wide of a comparable issuance, which is fairly attractive, investors said.

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