HONG KONG, April 15 (Reuters) – Industrial Bank of Korea (024110.KS) is looking to sell a benchmark-sized, 5-year dollar bond at a price of around mid-500 basis points (bps) over mid-swaps, a source close to the deal said on Wednesday.
The deal which is likely to be priced on Thursday during New York trading hours, will not feature a government guarantee since IBK, which specialises in lending to small and medium-sized enterprises, is already majority-owned by South Korea.
A benchmark deal is typically of at least $500 million, but sources had earlier told Reuters the South Korean lender could raise as much as $1 billion.
Barclays Capital, Citigroup (C.N), Merrill Lynch, and Morgan Stanley (MS.N) will be the lead managers for the sale.
IBK is rated A by Standard and Poor’s and A2 by Moody’s, or the sixth-highest investment-grade rating. The lender is rated one notch above that at A-plus by Fitch, but with a negative outlook. (Reporting by Rafael Nam; Editing by Jonathan Hopfner)