KorAm cooks up kimchi flavoured sub debt

The bank hopes to secure exceptionally tight pricing for its debut $150 million upper tier 2 deal.

The 10 non call five transaction marks the first dollar-denominated subordinated debt issue from Korea since June 2000 and the first upper tier 2 issue to be targeted predominantly at local accounts. It also represents a step forward in the evolution of the kimchi structure designed by Salomon Smith Barney and first put to use earlier this summer on a $110 million issue for Hyundai Motor.

News of KorAm's impending issue, which is likely begin roadshows at the beginning of November, has already had a marked effect on existing subordinated debt spreads from the Republic and appears to have prompted a re-pricing of the entire curve. This is largely because the bank...

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