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Biz News Korea(Eng)

KEB Hana Bk ups global issue scale to $650 mn on overwhelming demand

Collected: 2016.10.14

Distributed: 2016.10.17

Source: Go Direct

South Korea’s KEB Hana Bank has decided to up fresh global debt offering in dual tranches for a total of $650 billion due to overwhelming order book. The bank initially eyed issues in $600 billion worth. The bank drew about $1.2 billion orders for its $600 million offerings during book building session, according to the investment banking industry on Wednesday.

The bank drew $500 million bids for three-year note from 42 institutions and, $600 million bids for five-year note from 49 institutions. The coupon rate of the three-year bond was set at 1.861 percent and five-year paper at 2.233 percent. The buyers included global IT companies and global investment banks. The bonds will be issued on Oct. 18.

The successful global issue after Hana Bank completed merger with Korea Exchange Bank in September last year suggests market confidence in the merged entity and its prospects.

Market observers believe that it is unusual for U.S.-based global IT companies with assets worth tens of trillions of won to invest in A rated KEB Hana. U.S. major companies have tended to make investments in bonds of companies with credit rating of AAA. They so far restricted investment in Korean bank bonds to policy financial lenders like Export-Import Bank of Korea.

By Ko Min-suh

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