Kookmin Bank To Issue New Bonds?

July 2008 | IPO News Alert

South Korea's top retail lender, Kookmin Bank, announced on July 29 that it will consider raising US$1.6bn in Europe through the issue of mortgage-asset backed bonds. If it goes ahead, Kookmin would be the first Asian bank to move into the covered bond market, which involves a form of debt security backed by cash-flows from mortgages or public sector loans. Since the bonds are backed by a real pool of assets, they have traditionally always received AAA credit ratings. The news comes as Citigroup, Bank of America, JP Morgan Chase and Wells Fargo also announce their plans to begin issuing covered bonds, secured by assets such as home loans.

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