Supply risk to bite on Korean bank credits

Korean banks will be tapping the bond markets in the near term, adding supply risk to their outstanding bonds, believes Nomura.

  • 26 Oct 2011
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Under pressure from the Korean banking regulator to pre-fund their 2012 maturities, Korean banks are likely to go to credit markets for funding soon, according to an October 24 Nomura research note from the sales and trading desk.

"We are worried about the upcoming supply risk from the Korean banks, as they are facing regulatory pressure to pre-fund for their maturities in 2012," said the note written by analyst William Mak. "In particular, Hana has relatively sizeable maturities of US$1.5 billion in [the first half of 2012] (including US$1 billion of senior [funding] maturing in April and US$500 million of [lower tier two] callable in April)."

Nomura believes that the supply could hit the market in the near term due to the recent tightening of credit spreads for Korean financials and the recent US$1 billion bond issue from Korean National Oil Corp (KNOC). Hana may have a particular need for funding but Korea Development Bank (KDB) is likely to be first in line to tap the markets, according to Mak.

Responding to a rally in the secondary markets, KNOC priced its bond issue on October 20 reopening Asia’s international bond markets and pulled in around US$8 billion worth of orders, according to sister publication Euroweek.

As a positive, Nomura believes that Korean commercial banks have recently improved their foreign currency (FX) liquidity under guidance from the regulator in view of recent volatility in the FX wholesale funding market.

  • 26 Oct 2011

Bookrunners of International Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 3,599.18 10 11.11%
2 HSBC 1,925.24 7 5.94%
3 Bank of America Merrill Lynch 1,736.50 8 5.36%
4 Itau BBA 916.67 2 2.83%
5 Bradesco BBI 900.00 2 2.78%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 10 Jan 2017
1 Morgan Stanley 800.00 1 20.00%
1 Itau BBA 800.00 1 20.00%
1 HSBC 800.00 1 20.00%
1 Citi 800.00 1 20.00%
1 Bradesco BBI 800.00 1 20.00%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $m No of issues Share %
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  • 10 Jan 2017
1 Standard Chartered Bank 295.00 1 32.24%
1 HSBC 295.00 1 32.24%
1 Credit Agricole CIB 295.00 1 32.24%
4 Mitsubishi UFJ Financial Group 30.00 1 3.28%
Subtotal 915.00 2 100.00%

EMEA M&A Revenue

Rank Lead Manager Amount $m No of issues Share %
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  • 02 May 2016
1 JPMorgan 195.08 50 10.55%
2 Goldman Sachs 162.26 37 8.77%
3 Morgan Stanley 141.22 46 7.64%
4 Bank of America Merrill Lynch 114.20 33 6.18%
5 Citi 95.36 35 5.16%

Bookrunners of Central and Eastern Europe: Loans

Rank Lead Manager Amount $m No of issues Share %
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  • 10 Jan 2017
1 UniCredit 4,163.05 29 12.35%
2 ING 3,184.83 25 9.45%
3 SG Corporate & Investment Banking 2,911.64 17 8.64%
4 Citi 2,741.75 18 8.13%
5 HSBC 1,822.32 18 5.41%

Bookrunners of India DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 11 Jan 2017
1 State Bank of India 119.94 1 19.52%
1 Standard Chartered Bank 119.94 1 19.52%
1 Mitsubishi UFJ Financial Group 119.94 1 19.52%
1 DBS 119.94 1 19.52%
1 Citi 119.94 1 19.52%