Bangkok--28 Nov--HSBC
*** HSBC sole arranger and bookrunner on all four KEXIM baht issuances ***
*** Overwhelming demand despite worst flood in 5 decades ***
HSBC acted as Sole Lead Arranger and Sole Bookrunner for the Export-Import Bank of Korea (KEXIM) on a THB7.5bn (approximately US$250m) dual tranche Thai baht bond transaction. This is KEXIM’s fourth successful Thai baht bond issue, despite the volatile market conditions and the current flooding crisis. HSBC was mandated with sole roles on all four of these transactions.
Issuer: The Export-Import Bank of Korea (KEXIM)
Rating: A1 / A / A+ (Moody's / S&P / Fitch)
Tenor: 3-year 10-year
Issue size: THB 6.5bn THB 1.0bn
Issue date: 25 Nov 11 25 Nov 11
Maturity: 25 Nov 14 25 Nov 21
Coupon: 4.16% 4.40%
Mr Yoon-Yung Kim, Executive Director of KEXIM, said: “The result achieved by HSBC underscores the strong confidence of local investors towards both KEXIM and the Korean Government. We are proud that we are the first and only foreign issuer who has been able to tap the Thai baht bond market twice a year as well as the first and only issuer of bonds from Korea able to achieve a 10-year issue tenor. This fourth Thai baht bond mandate underpins our confidence and trust in HSBC’s ability to successfully drive our deal in the local currency bond market.”
KEXIM initially planned to issue THB5bn with a Greenshoe option. Given that the book was almost two times oversubscribed, KEXIM decided to upsize the issuance to THB7.5bn. This enabled KEXIM to price inside the initial guidance for both the 3-year and 10-year tranches.
Mr Matthew Lobner, Chief Executive Officer of HSBC Thailand, said: “HSBC has successfully acted as the Sole Bookrunner and Sole Lead Arranger for all four of KEXIM’s Thai baht bonds. The latest successful transaction reflects investors’ view of KEXIM as a highly rated world class institution. With KEXIM’s solid credit stories and HSBC’s effective communication with local investors, the transaction received overwhelming demand from high quality investors. The success of this transaction demonstrates HSBC’s concrete relationship with KEXIM and further confirms HSBC’s strong collaboration across the global debt capital markets platform and its capacity to manage and execute cross-border Thai baht transactions.”
KEXIM, rated A1, A and A+ by Moody’s, S & P and Fitch respectively, is a wholly Korean State-owned financial institution whose main activity is to support Korea’s export-led businesses and to facilitate economic cooperation with foreign companies.
Media enquiries to Varanandha Sutthapreeda on 0-2614-4609 or Savittree Muadmuang on 0-2614-4606.