Clifford Chance Advises on Three Korean Capital Market Deals

Leading international law firm Clifford Chance has advised on three Korean capital market transactions in July.

The first transaction was Korea Hydro and Nuclear Power’s (KHNP) offering pursuant to Rule 144A/Reg S of its US$500 million 4.45 per cent notes due 2021 from its US$5 billion MTN programme. This is the first 10-year international public bond offering by a Korean government-owned corporate issuer so far this year.

The second transaction was Kookmin Bank’s placement of 34.97 billion common shares of KB Financial Group, which netted approximated US$1.8 billion. This deal marks the largest Korean equity deal this year.

Rounding up the deal list is Korea South-East Power Co., Ltd’s offering pursuant to Reg S of its US$300 million 3.625 per cent notes due 2017.

“There’s been a surge in dollar-based capital market activity by Korean companies this past month, despite concerns over US and European sovereign debt,” said Hyun Kim, Hong Kong capital markets partner. “The market conditions were right and we were able to assist our clients in successfully closing all three deals against a tight timeframe.”

“We have one of the largest dedicated Korean capital markets team in Asia Pacific and have continued to grow the team, including the addition of Richard Lee, a respected and experienced lawyer who recently joined us from a US firm, as counsel in the Hong Kong office,” said Crawford Brickley, Head of Capital Markets, Asia Pacific.

Details of each transaction:

KHNP Rule 144A/Reg S Notes – advised the joint lead managers, Barclays Bank, Goldman Sachs, Morgan Stanley, Royal Bank of Scotland and Samsung Securities as US counsel on the issuance by KHNP on its US$500 million 10 year 4.75% notes due 2021 from its US$5 billion MTN programme. Partner Hyun Kim led the deal and was assisted by counsel, Richard Lee and associate Sonia Won, all based in Hong Kong. Lee & Ko advised the dealers and joint lead managers on Korean law.

Kookmin Bank share placement – advised the joint lead placing agents and the co-managing agents, Citi, Bank of America Merrill Lynch, Korea Investment Securities and KB Investment & Securities) as US counsel on Kookmin Bank’s 34.97 placement of common shares of KB Financial Group Inc.  This is the largest Korean equity transaction so far this year. Hong Kong partner Hyun Kim led the deal and was assisted by counsel, Richard Lee. Cleary Gottlieb acted as US counsel for Kookmin Bank.

KOSEP Reg S Notes – advised the initial purchasers, Citi, Goldman Sachs and Morgan Stanley as US counsel on KOSEP’s issuance of US$300 million 3.625% notes due 2017. Partner Hyun Kim led the transaction and was assisted by counsel Richard Lee, associates Sonia Won and Heesug Chung, all based in Hong Kong. Lee & Ko advised the initial purchasers on the Korean aspects of law.

www.cliffordchance.com


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