ABN AMRO, Barclays Capital and Commerzbank have been mandated to arrange a $200 million one-year deal for Woori in what will mark a debut borrowing for the Korean banking group. Pricing on the deal reflects the incredible shrinkage which has been seen in loan margins this year and carries a headline spread of 10bp over six-month Libor and an all-in of 19bp.
Many bankers describe the pricing as ludicrous and believe that it may end up being under-subscribed even though syndication is being limited to relationship banks.
Market participants argue that had Woori Bank decided to tap the Hong Kong dollar loan markets, it would have had to pay a...
