When Kookmin Bank’s $1 billion five-year covered bond came to market in May 2009, it was feted as the deal of the year. Oversubscribed by six times, it was hailed as the transaction that would finally open the covered bond market in Asia, after two high-profile attempts from Japan’s Shinsei Bank in 2008 failed to emerge.
But so far no other Korean or Asian financial institution has followed Kookmin’s example. That is set to change in 2010.
The full version of this story is available at www.iflr.com.