[KOGAS press release/ June29, 2023] Korea Gas Corporation (KOGAS) announced on June 29th that it has successfully concluded the issuance of $500 million in global bonds. The bonds, issued as 144A/RegS foreign currency bonds, feature a coupon rate of 4.875%.

The five-year, single-tranche bond offering was priced at +0.88% compared to the U.S. five-year government bond rate, reflecting a 32 basis points decrease from the initial price guidance.

KOGAS not only reaffirmed the trust of global investors in the company but also achieved the lowest spread among five-year bonds issued by Korean companies (excluding policy financial institutions) since the first interest rate hike by the U.S. Federal Reserve on March 16th of the previous year.

Despite the presence of external uncertainties such as volatile monetary policies in major economies, escalating geopolitical conflicts, and concerns regarding a global economic downturn, KOGAS successfully reduced additional interest rates and secured stable foreign currency funding. This achievement is attributed to the company's strong credibility as a global energy public company.

The global bond offering attracted significant interest from 94 institutional investors, with orders totaling 3.4 times the public offering size based on the final order book.

In terms of regional distribution, Asian investors accounted for 56% of the investors, followed by Europe and the Middle East at 32%, and the United States at 12%. Among the investor types, banks comprised 47%, asset management and funds constituted 22%, public institutions and insurance companies represented 20%, and private banking and other entities accounted for 11%.

An official from KOGAS highlighted the potential impact of regular overseas public bond offerings in narrowing spreads, even in situations where investors may have limited understanding or interest in the company.