Korea's Ministry of Finance and the Economy MoFE has put paid to plans for a $250 million upper tier 2 debt issue just a week before roadshows were due to start. Salomon Smith Barney was mandated for a 10 non-call five offering by the government-owned bank last month, having previously held a mandate for a hybrid transaction.
However, news of a prospective sub debt issue immediately raised eyebrows among Asian FIG experts, since Cho Hung is in the process of being merged with the Shinhan Financial Group - the one bank, which will need a boost to replenish capital written off as a result the acquisition.
For two years after...
