Korea Housing Finance Corporation is taking orders for a five year US dollar benchmark covered bond, with initial price thoughts offering a pick-up of some 25bp over the South Korean issuer’s last benchmark. Pricing is expected later today (Tuesday).

Following a series of investor meetings, KHFC leads BNP Paribas, Citi, ING, Samsung Securities and Standard Chartered opened books for the Reg S/144A issue after the Asian open today, with initial price thoughts of 100bp over Treasuries. Syndicate officials at the leads said guidance and pricing is expected after the US open.

KHFC last issued a dollar benchmark covered bond in November 2015, selling a $500m (Eu445m, Won546tr) five year. Syndicate officials at the leads saw the November 2020s quoted at 75bp over Treasuries, pre-announcement.

South Korea introduced a dedicated covered bond law in 2014, which has since been used by fellow Korean issuer Kookmin. However, the state-owned KHFC has continued to issue under legislation specific to the institution, as it has done since launching its first covered bond in 2010.

The last benchmark covered bond from South Korea was a $500m five year issue for Kookmin in January.