annual report - Hypo Real Estate Holding AG

Client: Export-Import Bank of Korea (KEXIM)
Need: KEXIM needed to adopt an execution strategy that delivered price and size certainty. In 2006,
KEXIM’s previous international benchmark was badly received by the market and criticized for
generous concessions that had to be made to key investors to complete the offering. Despite
these concessions, the final offering still ultimately fell short of the market’s expected size. In
the context of the market's bad experience with KEXIM's previous offering, it was imperative
that this time round in 2007, KEXIM completed an extremely successful offering.
Solution: In February 2007, KEXIM surprised the market by mandating DEPFA to act as Bookrunner for
its 3750 million 10 year offering. DEPFA’s anchor order played a critical role in transforming
KEXIM’s pre-launch tactics: for the first time KEXIM was able to launch definitive guidance
on the price and size of the issue, from which bookbuilding could progress. In response to
KEXIM’s clear communication, over 31.4 billion of orders were received from 63 investors
in 21 countries enabling KEXIM to complete the largest EUR offering by a South Korean
borrower. DEPFA’s significant lead order helped KEXIM achieve a US$-equivalent price of
27bp over US$ mid-swaps which was 4bp through its existing US$ yield curve.
People: Stephen Diao, Managing Director, PSO, Asia · Evelina Wang, Director, PSO, Asia
Stephen Diao:
“DEPFA leveraged its anchor order to win a role as Bookrunner
and Joint Lead Manager on KEXIM's 3750 million
10 year benchmark offering in February 2007. By extending
the strength of DEPFA’s balance sheet, DEPFA was
able to deliver momentum early in the bookbuilding
process to provide the utmost certainty of successful and
aggressive execution”