KOEWPW’s 2026 Green and Climate Transition Finance Framework expands eligible proceeds to include LNG combined-cycle generation projects that replace or convert existing coal assets, tied to Korea Taxonomy criteria and a longer-term hydrogen pathway. Named projects include Shin-Honam, Donghae and Dangjin units 5 and 6. This is a project-based transition case, not a general gas-financing framework.
The transaction is also notable in a broader context. Climate Transition Bonds remain a new instrument — ICMA guidelines were published only in late 2025 — and Japan’s government is the largest issuer to date. KOEWPW’s bond extends the format to Korean corporate issuers and may serve as a benchmark for other KEPCO subsidiaries.
IPT was set at Treasuries +90bps. KEPCO group USD comparables trade at z-spreads of ~45–75bps, implying ~40bps of tightening would align KOEWPW with the existing group curve. Final pricing and secondary performance will indicate how investors price the coal-heavy profile against the transition label.
