Korea Western Power raises $37M in green bond priced below market
What's the deal? Korea Western Power (KOWEPO)Dealroom has a profile for this one. Try Dealroom → issued a five-year green bond worth KRW 50 billion (about $37 million) at an interest rate 6.8 basis points below the average market yield. Hanyang SecuritiesDealroom has a profile for this one. Try Dealroom → served as lead manager on the offering, announced September 10.
What's the endgame? The state-run power producer plans to use the proceeds for environmentally friendly and low-carbon transition projects that comply with the Green Bond Principles. It framed the raise as support for the government's energy transition policy.
Why now? By pricing below the average market yield, KOWEPO cut interest expenses and improved terms for long-term financing. It said the successful offering came "despite growing uncertainty in the corporate bond market."
Between the lines: A KOWEPO representative said the deal "confirmed investor confidence in our financial soundness and ESG management by issuing a green bond at a competitive interest rate." The company said it plans to diversify its sustainable finance sources going forward.
The signal: At roughly $37 million, this is a modest raise — sitting near the bottom decile of comparable deals by size. But the below-market pricing points to steady appetite for high-grade green debt from state-backed issuers, even in a jittery bond market.
Read more: mk.co.kr
Image credit: Chris Hunkeler
