KDB issues first green SOFR-linked notes
Korea Development Bank has raised $1.2 billion via a triple tranche bond that includes Asia’s first green SEC-registered SOFR-linked US dollar floating rate notes issue.
The $300 million of three-year notes, priced at SOFR average index plus 0.25%, were issued alongside two fixed rate tranches: $400 million of three-year with a 0.4% coupon and $500 million of five-year-and-six-months with a 1% coupon.
Initial price guidance for the three-year fixed and floating rate tranches was set at Treasuries plus 45bp and the SOFR-equivalent respectively. That of the five-and-a-half-year fixed rate note was Treasuries plus 60bp.
Proceeds from the green SOFR tranche will be allocated toward financing and/or refinancing new or existing projects from the eligible green categories under KDB's sustainable bond framework. Proceeds from the fixed rate notes will be used for general operations, including extending foreign currency loans and the repayment of maturing debt and other obligations.
Bank of America Securities, Citigroup, Credit Suisse, JP Morgan, KDB Asia and Mizuho Securities were joint bookrunners and underwriters for the issue, with legal counsel from Linklaters.
