Kogas puts taper talk aside to raise $500 million

The Korean power company takes advantage of pent-up investor demand, pricing new five-year bond at a small 10bp premium to existing curve.
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Kogas is the world's biggest LNG importer
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<div style="text-align: left;"> Kogas is the world's biggest LNG importer </div>

Korea Gas raised $500 million on Monday night, giving Asian bond investors their first chance to buy new investment-grade paper since US Federal Reserve chairman Ben Bernanke spooked markets into fearing an end to government asset purchases.

Bernanke’s comments drove rates higher on longer-dated instruments and created enough volatility to make the market too risky for regular borrowers in Asia. Rates have calmed since then and are still at extremely attractive levels for issuers.

There is also plenty of demand from investors keen to deploy capital, as Kogas demonstrated. Total demand for the deal is said to have exceeded $6 billion.

The strong response...

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