S.Korea's KEXIM eyeing $1 bln 10-yr bond sale-source

HONG KONG, May 31 (Reuters) - Export-Import Bank of Korea (KEXIM) is considering selling a dollar-denominated 10-year bond that could be around $1 billion in size, said a source familiar with the plans.

KEXIM has mandated Barclays Capital, Deutsche Bank (DBKGn.DE: Quote, Profile, Research), Depfa, Merrill Lynch MER.N, and Morgan Stanley (MS.N: Quote, Profile, Research), according to the source, who asked not to be identified because he was not authorised to talk publicly about the transaction.

"They are looking at doing a deal that could be at least $1 billion, and possibly even $1.5 billion depending on the market conditions," said the source, adding the trade financing arm of the South Korean government had yet to make a final decision.

"They don't need the money right away, so they can afford to wait for the best timing. It could come next week, but they could also decide to hold off," he said.

A KEXIM official at the Treasury department had told Reuters earlier on Friday the mandates were not official, but that it was looking at the dollar bond primary markets.

"We are ready to go at any time," said the official, asking not to be identified talking about the transaction.

"If we do a dollar deal it would be a benchmark size but I don't think the market is that attractive at the moment, so we are still thinking about it," he said.

KEXIM raised 750 million euros in five-year bonds in mid-May, bringing its total fundraising for the year to around $3 billion. An official at the Treasury department had said after that deal, KEXIM would likely raise an additional $2 billion this year. (Reporting by Rafael Nam; Editing by Louise Heavens)