BMW Financial Services Korea’s Issuance of Unsecured Bonds in Korean Capital Market
2012.12.07.
Yulchon’s Securities and Capital Markets Group advised BMW Financial Services Korea (“BMW FSK”), an installment financing service arm of BMW Group in Korea, on its successful domestic issuance of three-year unsecured bonds, whose aggregate amount was 100 billion Korean Won. The bonds were issued to increase BMW FSK’s operating capital.
This transaction is unique in that the negotiation and the execution of the relevant agreements, including the underwriting agreement, were made in different languages (negotiation in English and execution in Korean) because BMW Group, the parent company of the issuer, directly discussed the terms of issuance with the lead manager in Korea. The Securities and Capital Markets Group served its role as a transaction counsel to guide the issuer and the lead manager to reconcile their positions in the negotiation of the issuance terms and the execution of the relevant agreements. With Yulchon’s assistance, the parties successfully closed the transaction.
Jae Hyun Park, a partner of the Securities and Capital Markets Group, supervised the transaction, and Jae Hyun Ko and Heegun Jung worked with Mr. Park in counseling BMW FSK.
