POSCO Successfully Issues Largest Ever US Dollar-Denominated Bonds

Securing Growth Investment Funds Through Proactive Financing via Bond Issuance

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] POSCO announced on the 10th that it successfully issued overseas bonds for the first time among domestic companies in 2023.

On January 9 (local time), POSCO issued U.S. dollar-denominated bonds, raising a total of $2 billion across three tranches: $700 million with a 3-year maturity, $1 billion with a 5-year maturity, and $300 million with a 10-year maturity, marking the largest scale ever.

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

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 benchmark 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 in global bonds in July last year, and through this $2 billion issuance, it significantly contributed 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 issuances this year.

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

By successfully issuing both KRW 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 on-offline roadshows targeting over 70 investment institutions in the U.S., Europe, and Singapore, actively explaining its global steel investment plans, growth strategies, and POSCO's excellent creditworthiness.

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

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