On Thursday, Korea Housing Finance Corporation (KHFC) closed
a $500 million covered bond. The deal is the countrys
first statutory offering but supplementary contracts
were needed to fill gaps in the legislation.
Only the second covered bond in Korea, the deal utilised
Article 31 of the KHFC Act which provides for
mortgage-backed securities or, in this case,
covered bonds. But with only a few paragraphs outlining the
structure, the statute was supplemented with contractual
arrangements that mimic European practice.
Michael Durrer of Sidley Austin advised the lead managers on
the deal: This is not a carbon copy of...