pusan-pulls-off-bond-deal-despite-volatility

Pusan pulls off bond deal despite volatility

The Korean bank succeeds in raising $250 million even after the markets turn south.
KoreaÆs Pusan Bank priced a $250 million 10-year non-call-five lower tier-2 bond on Thursday, closing the deal rated A3BBB by MoodyÆs and Fitch at 140bp over mid-swaps, or 204.5 over Treasuries. The transaction generated an order book of $400 million following a roadshow in Hong Kong and Singapore.

The deal, managed by Citi, Korea Development Bank and UBS, was announced in a relatively stable market on the Thursday of the previous week. However, the equities sell-off on Friday October 19 was followed by significant volatility the following week.

ôKeximÆs new 2012s, which had priced at 116bp over Treasuries and tightened to 113bp over Treasuries in the secondary market, spiked out to 123bp on...
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