POSCO Successfully Issues Largest Ever US Dollar-Denominated Bonds

$2 Billion (Approx. 2.5 Trillion KRW)
Despite Global Financial Market Uncertainty Including US Interest Rate Hikes,
First Overseas Bond Issuance Success by Domestic Company in New Year

[Image source=Yonhap News]

[Asia Economy Reporter Donghoon Jeong] POSCO has succeeded in issuing overseas bonds for the first time among domestic companies in the new year.

On the 9th (local time), POSCO issued U.S. dollar bonds with a total of $2 billion (approximately KRW 2.482 trillion), the largest ever, consisting of three tranches: $700 million (about KRW 868.7 billion) with a 3-year maturity, $1 billion (about KRW 1.241 trillion) with a 5-year maturity, and $300 million (about KRW 372.3 billion) with a 10-year maturity.

The interest rates were issued at favorable spreads based on strong demand for safe assets from global major investors: +190bps over the 3-year U.S. Treasury, +220bps over the 5-year, and +250bps over the 10-year.

The bonds issued by POSCO this time were the first U.S. dollar public bonds by a domestic company in the global market following the Federal Reserve's 50bps rate hike on December 15 last year (local time). Successfully issuing amid high financial market volatility reaffirmed POSCO's status as a high-quality bond issuer among global investors.

POSCO had previously successfully issued $1 billion global bonds in July last year, and through this $2 billion issuance, it has made a significant contribution to supplying foreign currency liquidity domestically and enhancing external credibility.

In particular, POSCO's spread this time is expected to serve as a benchmarking case for companies planning overseas bond issuance this year.

Earlier, on the 5th, POSCO also issued KRW 700 billion unsecured public bonds, receiving purchase orders totaling KRW 3.97 trillion, the largest ever since the introduction of the domestic corporate bond demand forecasting system in 2012.

By successfully issuing both won and foreign currency bonds consecutively, POSCO has proactively secured funds and growth investment resources in preparation for further interest rate hikes and liquidity tightening.

Meanwhile, prior to this bond issuance, from January 3 to 8, POSCO conducted an on-offline roadshow targeting more than 70 investment institutions in the U.S., Europe, Singapore, and other regions, actively explaining its global steel investment plans, growth strategies, and POSCO's excellent creditworthiness.

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