The three CTBs raised USD1.1bn in aggregate and attracted order books several times their respective issue sizes. Proposed special legislation envisages continuity of existing debt, and no merger-triggered change-of-control put or automatic coupon adjustment was identified. However, investors need clarity on responsibility for proceeds allocation, impact reporting and external review under each existing framework.
Korea Power Generation would inherit most of the country’s coal fleet: approximately 32.1GW of Korea’s roughly 40GW of coal capacity. The CTBs’ selected coal-replacement projects scheduled through 2035 address approximately 6.4GW, around 20% of the estimated combined entity’s coal portfolio.
National coal retirement milestones extend beyond the IEA’s 2021 benchmark. Clearer coal-retirement dates, operating horizons for replacement gas assets and pathways away from unabated LNG would help investors assess whether future financing supports a portfolio transition consistent with a 1.5°C-aligned benchmark.
