The Hong Kong office of Jones Day has acted on Korea's largest and longest - in terms of legal maturity - cross-border securitisation.

Partner Jeff Chen led the firm's team advising Ambac Assurance Corporation as guarantor on the issuance by Korea First Mortgage No. 3 PLC of ¬550m (US$740m) Guaranteed Secured Floating Rate Notes due 2036. The deal, which closed on 6 December, was originated by Korea First Bank on a pool of residential mortgage loans in Korea. BNP Paribas, Calyon and The Royal Bank of Scotland acted as joint arrangers.

The transaction involved a 30-year cross-currency interest rate swap with Calyon, the longest ever on any Korean securitisation, in which Ambac issued an unconditional 30-year swap guarantee in addition to its 30-year unconditional note guarantee. The deal is also notable for being the third cross-border RMBS deal completed by the same originator, Korea First Bank, in a single year.

Chen said: "The all-in pricing on this wrapped transaction was incredibly tight and bodes well for the prospects of wrapped deals out of Korea in 2005."