Korea Resources fires up bond

Quasi-sovereign borrower pays a new issue premium to counteract ratings pressure.
Korea Resources' rating feeling the heat from Moody's
Korea Resources' rating feeling the heat from Moody's

Korea Resources returned to the international bond markets with a $500 million deal on Monday, almost one year after its last outing.

The quasi-sovereign borrower sized its five-year Reg S deal at the higher end of expectations for $300 million to $500 million.

In doing so, it took advantage of a relatively strong order book compared to recent precedent and slightly firmer market conditions, with investment grade spreads tightening 1bp to 2bp over the course of the Asian trading day.

It probably helped that the deal appeared to offer good value in comparison to most Asian primary market deals, whose issuers consider it an...

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