Export-Import Bank of KoreaÆs euro-denominated bond proved a successful trade last week when it priced a Ç750 million transaction at 138bp over mid-swaps, at the tight end of guidance via Citi, Depfa Bank, Deutsche Bank, HSBC and RBS. The bonds had tightened by just 1.5bp by Friday afternoon, marking a contrast in the substantial rallies seen in other transactions earlier this year, such as Korea Midland Power, Korea Southern Power, and Swire.
ôThe market is in better shape,ö says a banker. ôNew issue premiums are definitely compressed and investors are not necessarily chasing deals so much anymore, which is what it takes to see a substantial rally.ö Or, with hindsight, this deal was potentially...
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