Capped Korea Hydro deal sees price flexibility

State-run power plant operator paid zero new premium for its latest $300m bond, defying global growth fears as credit spreads remain volatile
Korea Hydro and Nuclear Power is Korea's sole nuclear power generation company
Korea Hydro and Nuclear Power is Korea's sole nuclear power generation company

Korea Hydro and Nuclear Power, a subsidiary of state-owned Korea Electric Power Corp, raised a capped $300 million five-year bond late on Tuesday night, pricing the instrument at its final price guidance.

The 144AReg S-registered offering defied global growth fears, which have prompted new bond issuers to pay up as was the case with Hebei Iron Steel’s debut $500 million three-year bond on Monday as investors demand compensation for the recent increase in market turbulence.

In spite of this, Korea Hydro ended up pricing its latest bond at Treasuries plus 100bp, which is 20bp tighter than its initial price guidance and flat to its existing curve,...

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