Korea Zinc Prices First PRS at Mid-5% Rate on July 23 Using Australian Subsidiary

According to MarketIn, Korea Zinc priced its inaugural 3-year price return swap (PRS) at mid-5% interest rate on July 23, utilizing its Australian subsidiary Richmond Valley Energy Reserve Holdings. The SPC established by Meritz Securities acquired 400.5 billion won in new shares from the subsidiary. The rate reflects a 1 percentage point premium over Korea Zinc's AA-rated 3-year corporate bond yield of 4.571%, attributed partly to the higher 4.35% Australian base rate versus Korea's 2.75%, and the liquidity risk of the unlisted Australian subsidiary.
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