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Korea Securities Finance issues first $300m foreign-currency global bond
Версия 2: Additional Korean outlets repeated the same announcement with no new facts, apart from a won-value conversion of the issue size.
Коротко
Korea Securities Finance Corporation said it issued a $300m three-year dollar global bond, its first foreign-currency bond since its founding in 1955 and, according to the company, the first public global bond by any securities finance company worldwide. The coupon was set at 4.977% and Moody's assigned an Aa2 rating matching South Korea's sovereign grade, with orders reaching eight times the issue size.
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Korea Securities Finance Corporation said it issued a $300m foreign-currency global bond, the first such issue since the company was founded in 1955 and, according to the company, the first public-form global bond by a securities finance company anywhere in the world. Yonhap and Seoul Economic Daily reported the deal on 6 October, and Chosun Ilbo put the size at about 400bn won. [ 1 , 2 , 3 , 5 ]
The bond is a three-year dollar-denominated public issue with a coupon of 4.977%, set at the three-year US Treasury yield plus 0.47 percentage points, according to Yonhap. Moody's assigned it an Aa2 rating, the same as South Korea's sovereign credit rating, the documents said. [ 1 , 2 , 3 , 5 ]
Orders reached $2.4bn in total, eight times the issue amount, which the company said was the largest order book for a recently issued sovereign-rated Korean bond. Banks accounted for 48% of demand, asset managers 39% and other investors 13%, according to Asia Economy and Seoul Economic Daily. Both said the company described the participation of high-quality global investors as notable for a debut issue. Seoul Economic Daily added that the company held roadshows in Singapore and Hong Kong to promote its public role in the domestic capital market and its financial soundness. [ 1 , 3 , 5 ]
Yonhap and Seoul Economic Daily said the company held a ceremony on 2 October to sign the underwriting contract with related institutions. Asia Economy published a photo caption of CEO Kim Jung-kak speaking at a ceremony marking the first foreign-currency bond issue, also dated 2 October. [ 1 , 2 , 3 ]
The company said the bond was issued to build a base for supplying foreign currency to securities firms. It said it plans to diversify funding away from domestic sources toward global markets and to expand the base for supplying foreign-currency liquidity to the domestic capital market. Asia Economy and Seoul Economic Daily said the company has pursued global expansion since Kim took office, including an FX swap investment and trading licence and the establishment of a Hong Kong subsidiary. [ 1 , 2 , 3 ]
Korea Economic Daily and Newsis also carried the announcement in their feeds. The article text available from those two outlets concerned unrelated stories, so no further details of the issue could be drawn from them. [ 4 , 6 ]
Почему это важно
The deal gives Korea Securities Finance a funding channel outside Korea and, on the company's account, a base for supplying foreign currency to domestic securities firms and the local capital market. It also adds a Korean quasi-sovereign borrower to the dollar market, and its pricing and demand levels may serve as a reference for other Korean issuers.
Ключевые факты
- Korea Securities Finance Corporation issued a $300m foreign-currency global bond, its first since its founding in 1955, 71 years ago. [ 1 , 2 , 3 , 5 ]
- The issue is a three-year dollar-denominated public bond with a coupon of 4.977%, equal to the three-year US Treasury yield plus 0.47 percentage points. [ 2 , 3 , 5 ]
- Moody's assigned an Aa2 rating, the same as South Korea's sovereign credit rating. [ 1 , 2 , 3 , 5 ]
- Orders totalled $2.4bn, eight times the issue size, which the company said was the largest for a recently issued sovereign-rated Korean deal. [ 1 , 2 , 3 ]
- By investor type, banks accounted for 48%, asset managers 39% and other investors 13%. [ 1 , 3 , 5 ]
- The company said it held a signing ceremony for the underwriting contract with related institutions on 2 October. [ 1 , 2 , 3 ]
- The company said it held roadshows in Singapore and Hong Kong to secure overseas demand. [ 3 ]
- The company said it plans to diversify funding from domestic sources toward global markets and to expand the base for supplying foreign-currency liquidity to the domestic capital market. [ 1 , 2 , 3 ]
Подтверждено несколькими источниками
- Korea Securities Finance Corporation issued a $300m three-year dollar global bond, its first foreign-currency bond since its 1955 founding. [ 1 , 2 , 3 , 5 ]
- The issue received a Moody's Aa2 rating matching South Korea's sovereign rating, and orders reached eight times the issue amount, or $2.4bn. [ 1 , 2 , 3 ]
- The coupon was set at 4.977%, or the three-year US Treasury yield plus 0.47 percentage points. [ 2 , 3 , 5 ]
- The company held a ceremony to sign the underwriting contract with related institutions on 2 October. [ 1 , 2 , 3 ]
- The company said the bond was issued to build a base for supplying foreign currency to securities firms. [ 2 , 3 ]
Пока неясно
- Whether the issue is the first public-form global bond by any securities finance company worldwide. The claim appears in several documents but is attributed to Korea Securities Finance itself and is not independently verified in the coverage.
- The settlement date and listing venue of the bond. None of the documents state when the bond settles or where it will be listed.
- The exact time of the 2 October signing ceremony. Documents give the date but no time.
- Any further detail from outlets whose article text could not be read on this event. The article text carried by Korea Economic Daily and Newsis concerns unrelated stories, so only their titles and feeds are usable.
Что пишут местные СМИ
Хронология, местное время
- Korea Securities Finance holds a ceremony to sign the underwriting contract with related institutions, at which CEO Kim Jung-kak speaks. [ 1 , 2 , 3 ]
- Asia Economy reports the issuance as the company's first foreign-currency bond in 71 years. [ 1 ]
- Yonhap reports the issuance with the 4.977% coupon, Aa2 rating and eight-fold order book. [ 2 ]
- Seoul Economic Daily reports the issuance, adding roadshow details and the investor breakdown. [ 3 ]
- Korea Economic Daily carries the issuance in its feed headline. [ 4 ]
- Chosun Ilbo reports the issuance in a feed summary. [ 5 ]
- Newsis carries the issuance in its feed headline. [ 6 ]