The Republic of Korea has returned to the bond market with a successful $1 billion bond led by joint global coordinators Barclays, Citigroup and Goldman Sachs.
The 10 year bond gained an order book well in excess of $4 billion and priced at treasuries plus 92 basis points, equating to a yield of 4.307%. This feat ended up repricing the whole Korean credit curve.
Prior to the issue, the KDB has been Korea's proxy sovereign credit and was trading at T120bp at the time the Republic announced the deal. By the date of pricing KDB had tightened to T107bp.
The lead managers cleverly built the book by...