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.