Sovereign Debt

Korea resets benchmarks for domestic bond issuers

Republic of Korea has become the first non-European issuer to price a euro bond with a negative yield, but it also reset the benchmark for other Korean issuers.

The Republic of Korea saw massive demand last week for its $1.45 billion dual-currency bond and, reflecting the liquidity in the market, became the first non-European issuer to price with a negative yield.

Investors flooded in for the SEC-registered $625 million 10-year paper and 700 million $825 million five-year bonds, indeed final books hit $3.6 billion for the US dollar tranche and 5.5 billion for the euro piece.

This allowed the deal to be upsized from an original $500 million and 500 million, but a $1.5 billion cap from the Korean government meant that it could not be increased any further.

“The main...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222