Kookmin Bank is readying what would be the country's first synthetic balance sheet CLO, sources report. The bank, which lists Euro-Pacific Growth Fund and ING among its major shareholders, has been working with Credit Suisse First Boston on a $700 million to $800 million, cross-border deal backed by loans extended to small and medium sized enterprises.

It is believed the proposed transaction will have a five-year maturity and a partly funded structure with dual credit default swaps on the super senior and mezzanine tranches. Sources say the structure could give Kookmin 6% to 8% regulatory capital relief on the loans.

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