[THE INVESTOR] Busan Bank, a subsidiary of BNK Financial Group, has sold contingent convertible bonds, or CoCos, worth US$250 million, the lender said on July 20.

The 10-year additional tier 1 bond, which drew orders of almost US$2.4 billion, is priced with a coupon of 3.675 percent.

“It is the lowest rate among US dollar-denominated CoCos ever issued in Asia since Basel III came into effect,” an official at Busan Bank said.

The Basel III is a global regulatory framework on bank capital requirements, stress testing and liquidity risk.

The lender plans to use the raised funds to pay back its senior debt worth US$300 million which matures in February next year.

By Park Han-na (hnpark@heraldcorp.com)