Hana Bank, South Korea's fourth biggest lender, raised $1 billion through the sale of three-year government-guaranteed bonds yesterday. It is the first Korean bank to tap the $100 billion debt support programme set up by the government last October.
The bonds pay a coupon of 6.50% and were reoffered at 99.555 for a yield of 6.666%. That translated into a yield spread of 490bp over mid-swaps, or 542.6bp over three-year US Treasury yields.
Initial price talk had indicated at a spread of 530bp over mid-swaps, which tightened to 500bp-525bp during this week's roadshow. As the lead managers prepared to close the books, the range was tightened even further to 495bp-500bp over mid-swaps.
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