UPDATE 1-Korea Hydro selling 5-yr dlr bonds this wk -source

HONG KONG, June 8 - State-owned Korea Hydro and Nuclear Power (KHNP) is selling benchmark five-year dollar bonds at around 400 basis points over US Treasuries in a deal to be priced sometime this week, a source close to the deal said on Monday.

The sale from KHNP is another step in a broad revival of offshore debt sales from the region this year that has accelerated over the past couple of months, in line with a sharp tightening of Asian bond spreads. [EUB/ASIA]

KHNP, a unit of electricity provider Korea Electric Power Corp (KEPCO) <015760.KS>, is in the midst of marketing the senior unsecured bonds, and is due to meet investors in London later on Monday, and then New York and Boston on Tuesday and Wednesday, respectively.

The nuclear power generation company concluded the Asian stage of the roadshow last week.

It is raising the debt for general corporate purposes.

Benchmark sales are typically of at least $500 million.

KHNP needs to boost capital investments as part of South Korea's long-term electricity supply needs.

Standard & Poor's last week said it expected annual capital spending by KHNP to reach 5 trillion to 6 trillion won ($4 billion to $4.8 billion) over the next few years, well above average spending of 1.9 trillion won over the last three years. [ID:nWNA5652]

Barclays Capital, Citigroup <C.N>, Deutsche Bank <DBKGn.DE> and Goldman Sachs <GS.N> are managing the benchmark-sized sale. Korea Development Bank is also a co-lead manager.