Kogas's $500 million bond attracts strong demand

Korea's state-owned gas company impresses investors with its scarcity value and triggers a surge of support for other Korean credits too.

By pricing a dollar deal on a Friday with a negligible new issue premium in tough credit market conditions, Korea Gas Corporation Kogas managed to achieve, if not the impossible, then certainly the unlikely. In a year when a new Asian international bond issue that is not from Korea is as rare as a contemporary Australian cricketer anyone has actually heard of, Kogas convinced investors that its offering had scarcity value.

Even arch-contrarian Brayan Lai, credit analyst at French...

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