June 10, 2009 / 4:17 AM / 8 years ago

Korea Hydro to raise up to $1 bln in bonds-source

HONG KONG, June 10 (Reuters) - State-owned Korea Hydro and Nuclear Power (KHNP) is raising up to $1 billion in a sale of five-year dollar bonds and has cut its guidance for the debt, said a source with direct knowledge of the deal.

The senior unsecured bonds from the unit of electricity provider Korea Electric Power Corp (KEPCO) (015760.KS) are being sold at a guidance of 362.5-375 basis points over U.S. Treasuries, said the source.

The guidance was cut from guidance of around 400 basis points over U.S. Treasuries provided to investors on Monday, said the source, who declined to be identified because he was not authorised to talk publicly about the sale.

A tightening in the guidance had been widely expected after KHNP attracted just over $8 billion in orders for the sale.

Pricing is expected later on Wednesday, either during European or U.S. hours, said the source.

Barclays Capital, Citigroup (C.N), Deutsche Bank (DBKGn.DE) and Goldman Sachs (GS.N) are arranging the sale. Korea Development Bank is an additional co-lead manager.

KHNP‘S debt was rated “A” by Standard & Poor’s and “A2” by Moody’s Investors Service, in line with the issuer’s credit ratings and equivalent to the agency’s ratings on South Korea. (Reporting by Rafael Nam)

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