Credit where credit’s due for KDB

Issuer: Korea Development Bank

Amount: $300 million

Issue type: Floating rate note

Launched: June 16

Lead manager: Goldman Sachs

Great things often come from small things. Such was the case last month when Korea Development Bank (KDB) issued an innovative $300 million floating rate note that grew out of a small MTN. The bonds offered investors the equivalent of disaster insurance should Korea’s premier borrower, and Euromoney’s recently nominated best Asian borrower, get downgraded.

The five-year bonds can be redeemed early if the borrower is downgraded below A3 by Moody’s or below A- by Standard & Poor’s.