shinhan-prices-first-kangaroo-bond

Shinhan prices first Kangaroo bond

The Korean bank prices at the wide end of guidance, but doubles the size of the fixed and floating deal to A$400 million.
In a rare event for an Asian issuer, KoreaÆs Shinhan Bank has tapped the Australian dollar market with a three-year two-tranche transaction managed by Macquarie and TD Securities. The A-A1 rated issuer priced the A$150 million fixed-rate tranche to pay a coupon of 6.875% and the A$250 million floating rate-tranche to pay BBSW plus 30bp quarterly.

The deal priced at the wide end of the 28bp-30bp range because it was ShinhanÆs first foray into the market and Kangaroo investors are generally unfamiliar with Asian names. ôAs a new issuer, Shinhan paid a little more to come to a new market and to attract new investors that havenÆt bought the credit before,ö says a source....
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