Korea Southern debuts in dollars

A third genco accesses the international markets but has to rely on the Korean bid to secure completion.

Joint leads ABN AMRO and Deutsche Bank priced a $150 million Reg S bond for Korea Southern Power Kospo on Friday. Timing of the deal was unfortunate, hitting renewed jitters on the Korean peninsula head on following the launch of test missiles and re-activation of a nuclear plant in the North.

However, a decision to continue was taken late in the week after spreads appeared to stabilise and Korean demand held up. Nevertheless, pricing had to come at the outer end of the pre-marketed range, with the five-year bond priced at 99.622% on a coupon of 4.25% to yield 4.355% or 160bp over Treasuries.

Relative to comparables, pricing seems wide on...

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