POSCO Successfully Issues Unsecured Won-Denominated Public Bonds

Successful First Public Bond Issuance Since New Corporation Launch
3.87 Times Subscription Amount in Demand Forecast
Orders Worth 1.465 Trillion KRW Flood In

Seoul POSCO Center exterior view

[Asia Economy Reporter Jeong Dong-hoon] POSCO announced on the 1st that it successfully issued its first Korean won unsecured public bonds since its new start as a newly established corporation in March.

On the previous day (the 30th), POSCO conducted a demand forecast ahead of issuing unsecured bonds worth 400 billion KRW, receiving purchase orders totaling 1.465 trillion KRW, which is 3.87 times the target amount. For the 3-year bonds with a target of 300 billion KRW, orders reached 1.16 trillion KRW, and for the 5-year bonds with a target of 100 billion KRW, orders amounted to 305 billion KRW.

POSCO proposed a desired interest rate band by adding -30bp to +20bp to the average rating yield, and successfully absorbed the issuance volume at 9bp below the benchmark for the 3-year bonds and 2bp below for the 5-year bonds.

Despite recent interest rate hikes causing tightening in the financial market and increasing uncertainty, POSCO was able to exceed the target issuance volume significantly on its first public bond issuance. This is interpreted as investors highly valuing POSCO’s world-class steel competitiveness, stable cash flow, and strong financial indicators, reflecting its sustainability.

Considering the scale of the target amount, POSCO is reviewing the possibility of increasing the issuance amount up to 800 billion KRW, the largest scale domestically since the first half of last year.

Meanwhile, in the credit evaluation conducted prior to issuance, POSCO received a credit rating of 'AA+' with a 'Stable/Positive' outlook from Korea Ratings and NICE Investors Service. Additionally, on the 28th of last month, the international credit rating agency Standard & Poor’s (S&P) assessed POSCO’s EBITDA margin as the highest and most stable in the global steel industry and assigned an ‘A-’ credit rating to both POSCO and its holding company, POSCO Holdings.

This content was produced with the assistance of AI translation services.