SEOUL: Korea Land & Housing Corporation floated a 40-year domestic debt to raise 100 billion won ($89.2 million) on Thursday, the company said, in the longest-dated note for a state-run company in South Korea.
The debt-ridden company sold the fresh issue at a yield of 5.26 percent in a private placement to an unidentified domestic life insurer. It plans to use the proceed for operational expenses and asset-liability duration matching.
A company source told Reuters that the government measure announced last week, aimed at helping the housing rental company restructure debt, had eased investor jitters over its liquidity problems, amid insurers' demand for longer-dated credit notes.
Until now, 30 years had been the longest maturity for South Korean state-run companies' debt, while the government has yet to float treasury bonds beyond 20 year maturity which was traded at 4.60 percent by Thursday close.
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