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...