Posco International’s headquarters in Songdo / Posco International
POSCO International (047050.KS) said Tuesday it had successfully issued a global bond for the first time since its founding.
The bond was issued as a single tranche with a five-year maturity and a size of $500 million, with the issue rate set at 90 basis points (1bp=0.01 percentage point) above U.S. Treasury yields. Total orders reached $2 billion, four times the issuance amount, leading to a final issue rate 30 basis points lower than the initial guidance.
By region, investors comprised 27 percent from the United States, 6 percent from Europe, and 67 percent from Asia. By institution type, asset managers accounted for 65 percent, banks 33 percent, and others 2 percent. “Despite being a first-time issuance, the share of U.S.-based investors reached 27 percent,” POSCO International said. “The inflow of U.S. funds, the largest bond investor base globally, shows that POSCO International’s creditworthiness has been broadly recognized among core investors, and it is expected to have a positive effect on securing a stable foundation for overseas financing going forward.”
Global credit rating agencies S&P and Moody’s assigned investment-grade ratings of “BBB” and “Baa2,” respectively, to POSCO International’s dollar-denominated bond.
POSCO International plans to use the funds raised to repay existing foreign currency borrowings and for general operating purposes.