Tightly priced KDB bonds perform in aftermarket

KDB prices $750 million worth of bonds inside its secondary curve with a book heavily laden with US investors. Elsewhere, CLP Power and Sunac China meet investors.

Korea Development Bank KDB early yesterday morning became the first Korean issuer to tap the US dollar bond market this year with a $750 million 5.5-year bond.

The initial guidance was in the area of Treasuries plus 205bp, but the joint bookrunners Bank of America Merrill Lynch, HSBC, KDB Asia, Royal Bank of Scotland, Standard Chartered Bank and UBS priced the bonds to yield Treasuries plus 195bp, which is at the tight end of the final guidance of Treasuries plus 200, plus or minus 5bp. But the bonds performed well in the secondary market despite the keen pricing.

According to one Hong Kong-based trader, the bonds...

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