Bond spotlight

KOMIPW transition framework maps coal-to-hydrogen pathway

Written by Jeannette Leong

Download full paper (0.3mb)

Korea Midland Power (KOMIPW), a wholly owned KEPCO subsidiary, came to market on 21 July 2026 with a three-year USD Climate Transition Bond. It is the second Korean utility to use the format, following Korea East-West Power’s inaugural transaction on 6 July 2026.

KOMIPW’s July 2026 Green and Climate Transition Finance Framework identifies projects linked to the retirement of Boryeong coal units 5 and 6, their replacement with LNG combined-cycle generation and a longer-term pathway towards hydrogen conversion. This is a project-based transition case, rather than a general framework for financing gas generation.

The timing creates an additional consideration. KOMIPW has a USD300 million conventional bond maturing in August 2026, shortly after the new transaction. Although the issuance occurs against a refinancing backdrop, Climate Transition Bond proceeds must be allocated to eligible green and transition projects rather than used for general refinancing.

About the author

Jeannette Leong

Jeannette Leong

Research Associate, APAC

Based in Singapore, Jeannette focuses on credit research and analysis across the Asia-Pacific region. She brings 19 years of fixed income investing experience in emerging markets, Asian fixed income and China’s onshore bond market.

Before you sign up

By completing this form, you agree to AFII sharing information that we think you may be interested in, including our insights on climate transition. See our Data Protection Policy for more information about how we collect and use your personal data, and any rights you may have in relation to your personal data. You may opt out from our distribution list at any time.