South Korea’s state-run power company, KEPCO, recently announced its plans to reissue bonds in the debt market. This decision has raised concerns among investors about the potential impact on the overall debt market. KEPCO’s reissuance of bonds could potentially lead to increased competition for funds in the market, affecting the pricing and availability of debt for other borrowers.
The fear is that with KEPCO entering the market again, there may be a decrease in demand for bonds from other issuers, leading to higher interest rates for those looking to raise funds through debt. This could make it more challenging for other companies or government entities to secure financing at favorable terms.
Investors are closely monitoring the situation, as any disruptions in the debt market could have broader implications for the economy. It is important for all stakeholders to carefully assess the potential impact of KEPCO’s bond reissuance and take appropriate measures to mitigate any negative consequences.