Government-owned Korea Development Bank, with KRW79.8 trillion (USD66.7 billion) in assets, was in the final stages of converting a five-year JPY65 billion (USD551.9 million) bond as DW went to press. "We're now just deciding on a counterparty," said S.W. Kim, head of swap trading in Seoul.
"We want the best possible pricing," he added, noting that the entire issue will be converted. As the bond was still in the works Kim declined comment on the rates it would pay and receive. Kim explained that the proceeds of the bond will go toward the bank's yen borrowings and will not be converted to won.
Fitch Ratings assigned an expected rating of single A for the impending bond issue last week, noting that the rating is not based on the bank's stand-alone financial strength, but on its relationship with the Korean government.
