Asia awards: Structured finance

Author: | Published: 9 Mar 2010
L-R: Soo-Man Park, Kim & Chang, Walter Son of Allen & Overy, Young-Hee Jo of Shin & Kim and Tony Oakes of Clifford Chance

Deals of the year

WINNER: Kookmin covered bond
Covered bonds came to Asia in 2009 with Kookmin Bank’s $1 billion offering in May. Although other issuers have not yet followed Kookmin’s example, market commentators expect more covered bonds out of Korea and, possibly, Japan.

Another first, Kookmin’s bond included credit card receivables within the cover pool of assets backing the deal. Credit cards were added to the structure to boost the rating and ensure that the bond’s assets could be sold if the bond defaulted (the mortgage market in Korea is not very active).

The deal was six-times oversubscribed and the Korean government is now considering introducing new legislation to facilitate further covered bonds. This transaction was unusually structured as a standalone...