Kookmin Bank opened books for a US dollar benchmark five year covered bond today (Thursday) that would be the South Korean issuer’s second legislative benchmark covered bond. Pricing is expected later today.

Kookmin announced a mandate for the deal earlier this month and leads ANZ, BNP Paribas, Commerzbank and DBS began taking IOIs for the new issue on Monday, while also requesting feedback on the deal’s five year maturity. Some market participants away from the deal had expected it to emerge earlier.

The leads today opened books for the US dollar benchmark five year 144A issue with initial price thoughts of the 100bp over mid-swaps area, before moving to guidance of 95bp-97bp, will price within range. The deal is expected to be priced after the US open.

Kookmin in October sold the first covered bond to be launched under dedicated South Korean legislation, a $500m (Eu460m, Won601tr) five year issue. Kookmin had previously issued on a contractual basis.

The last benchmark covered bond issue from Korea was a $500m five year for Korea Housing Finance Corporation on 12 November.