Korea sets new benchmark with $2bn bond

The sovereign raises its first dual-tranche multicurrency note since 2006, selling a debut 30-year dollar note in a bid to extend its curve amid overwhelming demand.

Republic of Korea has raised a $2 billion dual-tranche multi currency bond, the first of its kind since 2006, as investors rush to hold quality credit.

The SEC-registered offering consists of a $1 billion 30-year fixed-rate tranche Korea’s first ever for that duration and a 750 million $1 billion 10-year also fixed-rate note, according to a term sheet seen by FinanceAsia. The bonds have coupons of 4.125% and 2.125% respectively.

Numerous reasons spurred the sovereign to issue the 30-year bond, including the need to set a new benchmark, investor diversification and a need to refinance an upcoming $2.5 billion worth of debt maturing this...

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