Bloomberg News

KNOC Sells $1 Billion of Debt as Oil Company Plans Acquisitions

October 19, 2011

Oct. 19 (Bloomberg) -- Korea National Oil Corp. sold $1 billion of bonds as the state-run oil developer plans to acquire overseas assets.

The five-year debt pays 310 basis points more than similar- maturity U.S. Treasuries, according to a person familiar with the transaction, who declined to be identified because terms aren’t set.

The company, known as KNOC, plans to acquire more assets next year, Kim Seong Hoon, the company’s Anyang-based senior executive vice president, said in a telephone interview on Oct. 7. KNOC has increased acquisitions of companies to enable Korea to raise its self-sufficiency for oil and gas, according to a Moody’s Investors Service report today. The rating firm assigned the debt an A1 grade.

KNOC has $5.89 billion of debt maturing by the end of 2017, including $2.35 billion in 2014, according to data compiled by Bloomberg. Kevin Han, a spokesperson for the company, declined to comment when contacted by telephone before the sale was completed.

--Editors: Pierre Paulden, Alan Goldstein

To contact the reporter on this story: Joseph Ciolli in New York at jciolli@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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