Korea pipeline halted by government, but KFB slips through

Korea First Bank (KFB) successfully completed a long-awaited subordinated debt issue yesterday (Wednesday) after quietly re-launching the $200 million deal via an accelerated bookbuild. The bank was able to take advantage of favourable issuance conditions because the Korean MoFE (Ministry of Finance & Economy) has decided to stop approving new issues because of concerns about the rising Won. As a result, prospective transactions for Kogas and the NACF are believed to have been postponed until later in the fourth quarter.