According to people familiar with the matter, South Korea is considering introducing restrictions prohibiting some foreign banks from arranging the issuance of overseas bonds; in this context, the supervisory window guidance has led to the postponement of at least one relevant transaction. South Korea's largest car rental company Lotte Leasing said on Tuesday that it is delaying the issuance of its first US dollar public bond. Sources, who did not wish to be named, said the decision stemmed in part from government window guidance. Sources said that the regulatory authorities raised concerns about the company's appointment of KGI Asia as the underwriting arrangement because the Taiwanese institution does not have a local securities license in South Korea. This blockage lengthened the transaction cycle, compounded by rising yields, deteriorated the market environment, and ultimately prompted companies to delay issuing bonds. The Rakuten Leasing case was the first known blocked transaction after South Korea's regulatory considerations restricted foreign investment banks without a local securities license from acting in offshore bond business with a local issuer. This matter also highlights that even without an official publication, unofficial regulatory opinions can influence the success or failure of a deal.

According to people familiar with the matter, South Korea is considering introducing restrictions prohibiting some foreign banks from arranging the issuance of overseas bonds; in this context, the supervisory window guidance has led to the postponement of at least one related transaction. South Korea's largest car rental company Lotte Leasing said on Tuesday that it is delaying the issuance of its first US dollar public bond. Sources, who did not wish to be named, said the decision stemmed in part from government window guidance. Sources said that the regulatory authorities raised concerns about the company's appointment of KGI Asia as the underwriting arrangement because the Taiwanese institution does not have a local securities license in South Korea. This blockage lengthened the transaction cycle, compounded by rising yields, deteriorated the market environment, and ultimately prompted companies to delay issuing bonds. The Rakuten Leasing case was the first known blocked transaction after South Korea's regulatory considerations restricted foreign investment banks without a local securities license from acting in offshore bond business with a local issuer. This matter also highlights that even without an official publication, unofficial regulatory opinions can influence the success or failure of a deal.