Thursday, March 26, 2009

Issues that still need

Issues that still need to be addressed regarding Korean government's guarantee for Hana Bank's proposed USD bond could cause delay in pricing of debt; under law, only debt issued to non-residents eligible for guarantee; residents also eligible for guarantee as long as they buy bond in secondary amrket. Hana Bank looking to sell as early as next week 3-year government-guaranteed bond that market participants expect to amount to around $500 million. This "new guarantee eligibility wrinkle" has raised doubts over enforcement of same, also flags a possible delay in deal, says Brett Williams, senior credit analyst at BNP Paribas. Any long delay or inability to enforce such guarantee would send negative signal and won't bode well for commercial banks looking to raise funds in overseas bond market, say some market participants

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