IPT: Kepco USD 3Y FRN at SOFR+ 95bps A, 5Y FXD at CT5+ 80bps A

Korea Electric Power Corporation (KEPCO) has issued two new U.S. dollar-denominated bonds as part of its ongoing capital-raising efforts. The first is a 3-year floating rate note (FRN) priced at SOFR plus 95 basis points, with an 'A' rating. The second is a 5-year fixed rate bond priced at CT5 plus 80 basis points, also carrying an 'A' rating. These offerings reflect KEPCO’s strategy to diversify its funding sources and manage interest rate risk in the current market environment.

KEPCO has previously issued USD-denominated green bonds, including 3-year and 5-year instruments expected to carry expected 'AA' ratings, indicating strong investor confidence in the company’s credit profile and sustainability initiatives. The recent issuance aligns with the company’s broader trend of accessing international capital markets to support its long-term infrastructure and energy transition goals.

The FRN structure allows KEPCO to benefit from potential declines in short-term interest rates, while the fixed-rate bond provides stability against future rate volatility. Both instruments are expected to attract a broad range of institutional investors seeking exposure to high-quality Asian corporate debt.