Kepco prints $700 million of debt

US investors, enjoying a healthy pickup in yield, buy 63% of Kepco's new 3% bonds.

Korea Electric Power Corporation Kepco came to market late Monday night Hong Kong time with $700 million of senior unsecured debt. The five-year notes were issued with a 3% semi-annual coupon and were re-offered at 99.664 to yield 3.073%.

The bonds printed at 180bp over the five-year US Treasury yield, which was aggressive compared to Korea Hydro and Nuclear Power Company's recent 2015 bonds. At the time of pricing, Korea Hydro was trading at 184bp over Treasuries.

“I would say Kepco almost priced to perfection with a few basis points of upside left on the table,” said Pradeep Mohinani, credit strategist at Nomura. By late afternoon Hong Kong time yesterday, the bonds...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222