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

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Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Jul 2017
1 Citi 42,407.89 189 10.32%
2 HSBC 38,494.81 214 9.37%
3 JPMorgan 35,781.02 156 8.71%
4 Deutsche Bank 20,507.70 77 4.99%
5 Standard Chartered Bank 19,506.54 127 4.75%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 14,063.16 33 16.64%
2 HSBC 10,846.35 25 12.83%
3 JPMorgan 9,933.95 33 11.75%
4 Bank of America Merrill Lynch 7,392.21 26 8.75%
5 Santander 5,883.67 23 6.96%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $m No of issues Share %
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1 JPMorgan 16,133.76 64 12.48%
2 Citi 15,638.40 57 12.09%
3 HSBC 10,280.54 49 7.95%
4 Deutsche Bank 7,770.04 19 6.01%
5 BNP Paribas 7,584.94 21 5.87%

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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%

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Rank Lead Manager Amount $m No of issues Share %
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1 ING 2,154.97 17 9.70%
2 UniCredit 1,729.43 12 7.79%
3 SG Corporate & Investment Banking 1,618.73 14 7.29%
4 Commerzbank Group 1,172.97 10 5.28%
5 Bank of America Merrill Lynch 1,155.31 8 5.20%

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1 AXIS Bank 7,937.37 101 21.68%
2 Trust Investment Advisors 3,739.50 97 10.21%
3 ICICI Bank 2,762.47 77 7.54%
4 Standard Chartered Bank 2,702.28 30 7.38%
5 HDFC Bank 2,035.28 56 5.56%