Korea Development Bank Accesses Fed

Amazing news that a Korean Government bank is about to float commerical paper to the Fed?

Oct. 28 (Bloomberg) -- State-run Korea Development Bank received Federal Reserve approval to sell as much as $830 million of commercial paper to the U.S. central bank, becoming the first Korean bank to tap the new funding facility.

KDB, South Korea's largest issuer of overseas debt, can raise $400 million in the U.S. by selling short-term notes, Sung Joo Yung, a spokesman for the Seoul-based bank, said today by telephone. The bank will roll over an existing $430 million of debt, he said.

Kookmin Bank, South Korea's largest, was also deemed eligible to sell commercial paper to the Fed, spokesman You Jung Youn said by telephone from Seoul. The amount of debt the Seoul- based lender will sell hasn't been determined, he said. The Maeil Business Newspaper today reported Kookmin would be able to borrow as much as $50 million.

Bloomberg.