why the volume is so low today?, page-14

Kogas mines rich debt seam

http://www.afr.com/Blogs/Opinion_Street%20Talk

Korea Gas Corporation is best known in Australia for buying stakes in gas development projects, but now it is dipping into Australian debt markets.

Kogas will today price its first Australian notes, which is expected to raise up to $350 million.

The deal, launched to institutional investors by lead managers Australia and New Zealand Banking Group, Deutsche Bank and UBS yesterday, initially intended to raise $150 million but it is expected to be extended after receiving adequate demand.

Kogas owns a 15 per cent stake in Santos’ Gladstone coal seam gas project and is investing $1.5 billion in Royal Dutch Shell’s liquefied natural gas venture, Prelude, for a 10 per cent stake and construction costs.

The company is a state-owned corporation and is the world’s biggest importer of LNG.

Kogas executive vice-president Young-sung Park recently told The Australian Financial Review? that Korean firms were willing to participate in developing Australian gas projects.

The fixed-rate notes were offered at a 4.75 per cent coupon, to be paid semi-annually in arrears.

The notes were due to settle on September 25 and would mature in September 2015.