Falling through the floor: KDB moves pricing ever tighter, celebrates rise of US investors in orderbook
Korea Development Bank pulled the country’s policy bank curve tighter this week with a dual-tranche dollar issue, becoming the latest Korean lender to close the gap with its global peers. The tight pricing of the deal drew complaints from KDB’s traditional investor base — but a hunger for short-dated dollar bonds and KDB’s new double-A image ensured support from a host of new accounts, writes Steve Gilmore.
The bookrunners priced a $500m January 2016 deal at 80bp over Treasuries on Tuesday and a $500m January 2018 deal at a spread of 97.5bp, managing to beat the level that Export-Import Bank secured for its own $1bn three year deal at the end of last year.
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