Republic of Korea in $1 Billion Notes Offering

September 11, 2013

Cleary Gottlieb represented the Republic of Korea in its $1 billion 3.875% notes due 2023. The notes were listed on the Singapore Stock Exchange and registered with the SEC. The offering closed on September 11, 2013.

The ROK global notes included Collective Action Clauses, which are designed to promote expeditious and orderly restructurings and workout procedures for sovereign debtors should a sovereign debt crisis ever occur. One of the most important CACs in the ROK notes is a majority amendment clause, which allows the holders of 75% of the outstanding principal amount of the notes to approve changes to the payment terms and other key provisions of the notes.

This offering was a takedown from the ROK’s $7 billion debt shelf registration statement filed with the SEC in May 2013. Citigroup, Deutsche Bank, Goldman Sachs, HSBC, Korea Development Bank and Woori Investment & Securities were the joint bookrunners for the transaction.