South Korea

The Republic of Korea has picked six banks for a bond that will include the first renminbi-denominated trade from the sovereign. The RMB portion is highly likely to be issued offshore but there’s also a possibility that the country will attempt to enter the recently reopened Panda market.

South Korea’s Woori Bank, which sent out a request for proposals for an offshore bond earlier this month, has hired banks to arrange meetings with investors.

South Korean game developer Nexon has sold all of its shares in rival company NCSOFT Corp for W605.1bn ($536m), ending a three-year relationship that failed to create any “significant synergies” between the companies.

South Korea’s first covered bond under its new rules finally came to fruition with Kookmin Bank selling a long awaited offering that had been in the works since June. But the delay proved worthwhile as the sovereign rating upgrade in September allowed the borrower to win over investors.

The Republic of Korea has sent out a request for proposals for an offshore bond to be issued as early as this month.

South Korea is set to see a long awaited covered bond this week, with Kookmin Bank finally starting to take orders for what will be the first such issuance since the government enacted new laws last year.

South Korea’s Woori Bank has sent out a request for proposals for an offshore bond, with plans to pick five or six banks to lead the transaction.

In this round-up, Hong Kong RMB clearing dropped in September, Macau's RMB deposits and cross-border settlement also fell in July, South Korea's RMB deposits kept contracting in September, and Bank of China Budapest branch formally launched RMB clearing services.

South Korean bond issuers have garnered a reputation for squeezing investors for every penny possible with aggressively-priced transactions. Investors may be critical of their tactics but the market needs to recognise the savviness of this strategy.

The Export-Import Bank of Korea (Kexim) has mandated four banks to arrange a non-deal roadshow that is set to begin on October 6.

Korean banks have pulled back from the Samurai market, as funding costs have moved against them, but some other names have stepped into the breach. Australian banks are a key fixture in the Samurai markets, while the arrival of Maybank this year gives a pointer to future issuance. Asia Pacific financial institutions issuers are also proving instrumental in the steady development of the Pro-Bond market. Volatility in China, however, is not helping anybody. In September, some of Asia Pacific’s leadering FIG borrowers spoke to GlobalCapital about prospects in the Japanese capital markets.

South Korea's LIG Nex1 had an IPO to remember, with institutional demand for the W524.4bn ($447m) deal going through the roof and books closing 121 times covered. The transaction priced at the top of the range, making it the largest Korean listing of the year.