To Build Infrastructure for Hydrogen Supply
Korea Gas Corp. (KOGAS) has successfully issued US$800 million in foreign currency bonds at the lowest interest rate ever by a state-run company. The company has secured sufficient funds to expand its natural gas business and establish infrastructure for hydrogen production, supply and distribution.
KOGAS announced on July 12 that it has successfully completed the issuance of US$800 million worth of global bonds (144A/RegS foreign currency bonds) on July 6 (local time). They were issued in the form of dual-tranche bonds -- US$450 million in five-year bonds and US$350 million in 10-year bonds. Their Interest rates were 0.375 percentage points and 0.65 percentage points added to the U.S. government bond rate. This is the lowest interest rate ever among bonds issued by a Korean state-run company.
The latest bond issuance marked the first time in two years since KOGAS issued US$500 million in global bonds in July 2019. In particular, the company succeeded in raising funds at a lower interest rate than its existing distribution interest rate.
By tranche, the bond issuance attracted 80 to 90 institutional investors, with subscriptions exceeding the offering by three to five times. By tranche, 64 percent to 75 percent of the investors were from Asia, 6 percent to 23 percent from Europe and the Middle East, and 2 percent to 30 percent from the United States. By institution, 32 percent to 51 percent wee asset managers and fund managers, 23 percent to 25 percent were banks, 12 percent to 37 percent were central banks and international organizations, and 8 percent to 12 percent were insurers and pension fund managers.