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South Korea's state-run gas company said Friday that it's successfully issued
US$750 million worth of 30-year bonds thanks to firm overseas investor
confidence in the country's long-term economic growth potential.
The
global bonds carry an annual interest rate of 6.25 percent and no put option,
making it the first of its kind issued by a local company, Korea Gas Corp.
(KOGAS) said.
"In the past, local companies have sold global bonds
with a maturity of 30 years, but they all had put option clauses that
effectively obliged early repayment," it said.
The successful sale
should make it easier for other local companies to issue their own overseas
bonds.
"The selling of the bonds at this juncture is noteworthy
because of the ongoing eurozone crisis, and heightened geopolitical risks
brought on by the sudden death of North Korean leader Kim Jong-il," KOGAS
said.
The latest bond sales show foreign investors' confidence in South
Korea's ability to post solid growth in the future that can generate demand for
gas, it said.
Initially, KOGAS expected to sell only $500 million
worth of bonds, but favorable investor response led to the increased debt sale,
the company added.