Korea Finance Corp executes aggressively priced global bond

Korea Finance Corp KoFC pushed out an aggressively priced $500 million SEC-registered five-year bond early Wednesday, achieving the lowest spread for five-year paper from a Korean bank this year. The bonds priced at Treasuries plus 180bp, at the wide end of the Treasuries plus 175bp to 180bp final guidance, but 10bp inside initial guidance.

By comparison, Industrial Bank of Korea issued a $500 million five-year bond at Treasuries plus 185bp last month. However, amid weaker markets on Wednesday afternoon, KoFC’s new bonds widened slightly and were bid at Treasuries plus 182bp in secondary, 2bp wider than the issue spread.

KoFC issues once...