South Korea’s Kogas raises $800 million in bond sale

South Korean LNG importer Kogas said it has raised $800 million in dual-tranche global bonds as it looks to boost clean energy investments, including building hydrogen infrastructure.

Kogas said in a statement it has achieved the lowest interest rate ever by a state-run company in South Korea.

The firm sold $450 million in five-year bonds at 37.5 basis points (bp) over US Treasuries (UST), and $350 million in ten-year bonds at 65 bp over UST, it said.

In addition, the bond issuance attracted 80 to 90 institutional investors, with subscriptions exceeding the offering by three to five times, according to Kogas.

The firm held a series of online meetings this year to better connect with overseas investors.

The new move marked the second global bond issue for Kogas after the firm launched $500 million in global bonds in July 2019.

Kogas said it would use the funds to expand its natural gas and hydrogen business.

The firm has earlier this year teamed up with compatriot refiner GS Caltex to produce and supply liquid hydrogen in the country.

Under the memorandum, the two firms aim to build a liquid hydrogen production facility at a Kogas LNG import terminal.

Moreover, the facility would utilise LNG cold energy to produce liquid hydrogen, Kogas said.

Kogas currently operates four large-scale LNG terminals, namely Incheon, Pyeong-Taek, Tong-Yeong, and Samcheok, as well as a small-scale regasification terminal at the Aewol port on Jeju island. The LNG importer plans to build a large terminal in Dangjin as well.

Most Popular

India’s ONGC approves Mozambique LNG investment

India’s state-run ONGC has approved an investment by its unit, ONGC Videsh, into the TotalEnergies-led Mozambique LNG joint venture, which is developing a 12.8 mtpa liquefaction plant at the Afungi complex.

Australia’s Viva Energy seeks FSRU for Geelong project

Australia’s Viva Energy is looking to secure a floating storage and regasification Unit (FSRU) for its proposed LNG import terminal in Geelong, Australia.

Atlantic LNG shipping rates, European prices down

Atlantic LNG freight shipping rates and European prices decreased this week compared to the week before.

More News Like This

South Korea’s Kogas boosts sales in February

South Korean LNG importing giant Kogas said its gas sales rose 20.4 percent in February compared to the same month last year.

South Korea’s Kogas logs lower sales in January

South Korean LNG importing giant Kogas said its gas sales in January decreased compared to the same month last year.

South Korea’s Kogas logs lower sales

State-owned Kogas sold 3.96 million mt last month, down 2.9 percent from 4.08 million mt in December 2023, the firm said in...

Kogas logs lower sales in November

State-owned Kogas sold 2.67 million mt last month, down 13.9 percent from 3.10 million mt in November 2023, the firm said in...