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.

- Advertisements -

Most Popular

Cheniere working on huge LNG capacity expansion

US LNG exporting giant Cheniere is working to add over 30 million tonnes of capacity at its Sabine Pass...

CEO: Repsol in talks to export Canadian LNG to Europe

Spanish energy firm Repsol has confirmed that it is in negotiations to add liquefaction units at its existing Saint...

Eni buys Exmar’s Tango FLNG to deploy it in Congo

Italian energy giant Eni has signed a deal to buy Exmar's Tango FLNG and plans to deploy the unit...

More News Like This

South Korea’s Kogas, Matrix pen hydrogen pact

South Korean LNG importing giant Kogas has signed a memorandum of understanding with US contractor Matrix Service to work...

South Korea’s Kogas boosts June sales

South Korean LNG importer Kogas reported a rise in its June gas sales on the back of higher demand...

Kogas, TotalEnergies strenghten LNG ties

South Korean LNG importing giant Kogas said it has signed a deal with France's TotalEnergies to boost liquefied natural...

Kogas unit inks Korean LNG bunkering deal

Korea LNG Bunkering, a unit of Kogas, said it has signed a deal to supply liquefied natural gas to...