Korea Finance Corporation launches $750 million benchmark bond

Despite nervous and confused markets, Korea’s newest policy bank launched a successful and uncomplicated bond issue this week on the back of a strong bid by US investors. Korea Finance Corporation KoFC raised $750 million with a 10-year deal, satisfying demand for yield and duration, yet achieving cost-savings by taking advantage of an inverted curve.

The issue was priced at mid-day on Tuesday in New York at a spread of 265bp over the 10-year benchmark US treasury yield, which was at the tight end of final guidance. Initial marketing set a range of 275bp to 265bp. In early trading, the bonds were quoted at 263bp-259bp, and yesterday were bid...