Investors buy IBK bonds despite uncertainty about privatisation

Korean policy bank Industrial Bank of Korea IBK early yesterday morning priced its $500 million 5.5-year bond, following an extensive round of global roadshows that kicked off in Asia on March 4 and ended in the US last week. BNP Paribas, Citi, Morgan Stanley and Royal Bank of Scotland were the bookrunners. IBK Securities was a co-manager.

IBK, whose mandate is to promote the economic activities of Korea’s small and medium-size enterprises, is one of Korea’s policy banks the others are Korea Development Bank, Korea Finance Corp and Kexim.

The bond priced at a yield of Treasuries plus 183bp, within the final guidance of Treasuries plus...