Korean loan margins inch ever lower

Woori Bank''s new $200 million loan offers an incredibly low margin of only 10bp over Libor.

ABN AMRO, Barclays Capital and Commerzbank have been mandated to arrange a $200 million one-year deal for Woori in what will mark a debut borrowing for the Korean banking group. Pricing on the deal reflects the incredible shrinkage which has been seen in loan margins this year and carries a headline spread of 10bp over six-month Libor and an all-in of 19bp.

Many bankers describe the pricing as ludicrous and believe that it may end up being under-subscribed even though syndication is being limited to relationship banks.

Market participants argue that had Woori Bank decided to tap the Hong Kong dollar loan markets, it would have had to pay a...

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 (2-10 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 (2-10 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