KHNP Issues $700 Million Global Bonds

Korea Hydro & Nuclear Power headquarters located in Gyeongju, Gyeongbuk. [Photo by Korea Hydro & Nuclear Power]

[Asia Economy Sejong=Reporter Lee Junhyung] Korea Hydro & Nuclear Power (KHNP) has issued a $700 million global bond (approximately 915 billion KRW).

KHNP announced on the 21st that it successfully issued a $700 million global bond in the dollar bond issuance market. Previously, on the morning of the 20th, KHNP officially announced the global bond issuance and began soliciting investors for a 5-year fixed-rate bond, starting with the Asian market.

The initial price guidance (IPG) was set at the 5-year U.S. Treasury yield plus 150 basis points (1bp = 0.01 percentage points). After soliciting investors from Europe and the United States, KHNP finalized the global bond issuance size at $700 million.

The spread was finalized at 123 basis points, which is 27 basis points lower than the IPG. This spread is 2 basis points lower than the 125 basis points spread on the same maturity bond issued the previous day by Taiwan semiconductor company TSMC, which has a similar international credit rating (AA grade) to KHNP.

A KHNP official stated, “Despite market conditions with intensified concerns over global tightening, we marketed our sound credit rating and financial stability, attracting investment demand of $1.7 billion from over 110 institutions.”

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