Despite the uncertainties and gyrations in international credit markets, it’s still possible for solid Asian borrowers to launch successful bond issues, as Korea East-West Power KEWP demonstrated yesterday.
The thermal power generation company, which is indirectly owned by the Korean government, managed to find an opportunity to raise $500 million while markets digested the latest attempt by policymakers to alleviate the European debt crisis.
Last week, Asia investment-grade bond spreads tightened by 6bp, outperforming US and European spreads, which each narrowed by 3bp. KEWP was the first Asian company to take advantage of calmer sentiment, as investors in the US and Hong Kong returned from holidays celebrating...
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