Busan’s $5bn response proves bond appetite
February 6, 2012 You can access the full text of this article on Euroweek website
South Korea’s Busan Bank drew a whopping $5bn of orders for its $300m bond last week, proving the ravenous appetite for investment grade bonds despite the heavy issuance since the start of the year.
Citi, Credit Agricole and UBS pitched the Busan deal with a initial price guidance of 385bp over Treasuries on Thursday morning, but tightened this to around 360bp — and then finally to 355bp in late afternoon, said a banker on the deal.
The five year notes were priced in line with final guidance, then surged on their Asian debut on Friday, tightening to as low as 323bp over Treasuries before pulling back to 330bp in late afternoon trading as some investors took profits, said credit traders from Hong Kong and Singapore.
Company — Busan Bank
Full nameBusan Bank
Registration countryRepublic of Korea