Lead managers ABN AMRO and Lehman Brothers finally priced a $150 million Reg S deal for Korea Western Power Kowepco on Friday, a week later than the market was originally anticipating. Virtually all market participants believe the deal brings 2002 to a dispiriting close and for the five gencos lined up behind it, pricing marks an inauspicious debut for a new issuance sector.
At the outset, the deal had been expected to price about 10bp behind the Korean Electricity Power Corporation's Kepco September 2007 bond, which has been fairly range-bound around the 126bp level for the past two weeks and was trading at this level on Friday. However, in a sign that the deal was...
