Kepco abandons 30-year bond

Rising Treasury yields prompt Korean utility to switch from a 30-year bond to a 30 put 10.

The Korean Electricity Power Corporation Kepco returned to the dollar bond market on Tuesday night with a $300 million deal that priced at the tight end of revised guidance. Like all recent transactions from Korea, the 30 put 10 offering attracted a huge order book, but suffered the impact of global market volatility during its first day trading on Wednesday, widening 5bp over the course of the Asian trading day.

Initially, Kepco had hoped to lengthen the duration of its funding profile with a 30-year bond and hoped to secure an all-in yield of up to 6%. However, since the transaction was mandated about three weeks ago, Treasury yields on the long bond...

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