KEPCO's $700M green bond draws $2.5B in orders
What's the deal? Korea Electric Power CorporationDealroom has a profile for this one. Try Dealroom → (KEPCO), South Korea's state-run utility, raised $700 million in a two-part US-dollar green bond sale, according to Reuters. Investors placed more than $2.5 billion of orders, and the bonds are set to be issued on 21 July 2026.
The structure: KEPCO split the deal into a $400 million three-year floating-rate bond and a $300 million five-year fixed-rate bond. The floating-rate piece pays the Secured Overnight Financing Rate (SOFR) plus 0.62 percentage points; the five-year bond pays a 4.750% coupon and sold at 99.534 cents on the dollar, just under face value.
What's the money for? Because the bonds are labelled green, proceeds are earmarked for renewable power and energy efficiency projects under the utility's sustainable finance framework.
Why it matters? A $2.5 billion order book — more than three times the amount raised — set fresh price points for KEPCO's dollar borrowing. Heavy demand usually lets an issuer price cheaper, as investors compete for a limited slice rather than demanding extra yield.
The signal: Oversubscription can lower future borrowing costs, since traders treat freshly priced levels as a reference for where a company's other bonds should trade. If demand stays firm, KEPCO can raise or refinance more dollar debt more easily — including funding tied to its green framework.
Read more: Finimize · Reuters
Image credit: MDGovpics
