Thursday, December 12, 2019
KOSPO Successfully Issues US$300 Mil. in Kangaroo Bonds in Australia
Interest Rate Set Lower than Expected
KOSPO Successfully Issues US$300 Mil. in Kangaroo Bonds in Australia
  • By Michael Herh
  • October 29, 2019, 11:50
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A bird's eye view of a gas combined cycle power plant that KOSPO started to build in Niles Cass County, Michigan in the United States on Sep. 4 (local time).
A view of a gas combined cycle power plant that KOSPO started to build in Niles Cass County, Michigan in the United States on Sept. 4 (local time).

Korea Southern Power Co. (KOSPO) announced on Oct. 28 that it has issued kangaroo bonds worth US$300 million in Australia for the first time since the company was founded. A kangaroo bond is a foreign bond issued in Australian dollars by non-domestic entities, including corporations, financial institutions, and governments, in the Australian financial market.

KOSPO said its issuance of the kangaroo bonds was a success as subscriptions amounted to US$550 million, with the interest rate set lower than originally expected.

In particular, Australian investors accounted for over 75 percent of the bond purchasers, a rare case for Korean bonds issued in Australian dollars, KOSPO added.

KOSPO plans to use the funds raised through the bond sales as equity capital for building a 158 kW combined cycle power plant in Niles, Michigan in the United States.