Three Korean banks to bring more than $1.5 billion bond issuance by end of first quarter

By Paul A. Harris

St. Louis, Jan. 21 - A triumvirate of Korean financial institutions is expected to sell more than $1.5 billion of bonds in three separate deals by late in the first quarter, according to an emerging markets source.

The three deals include one each from Korea Development Bank, Export-Import Bank of Korea and Woori Bank.

The amount is expected to be divided more or less evenly among the three issuers, the source said.

Export-Import Bank has mandated Citigroup, Barclays Capital, and UBS Investment Bank to run its deal.

Korea Development Bank has mandated Citigroup and Deutsche Bank Securities.

The mandates for Woori Bank's deal (BB+ subordinated debt ratings from Standard & Poor's), meanwhile, have gone to JP Morgan, Credit Suisse First Boston and Merrill Lynch & Co.

The emerging markets source said that while structure and timing of the separate deals remains to be determined, the market is anticipating bonds with tenures closer to five years than to 10 years.

"Some of the details are up in the air because there is presently enough supply that people are going to wait and see what the first guy out does and plot their strategies from there," the source said.

The source also said that Korean issuers have a tendency to bring bond deals in close chronological proximity.

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