The bond was priced at 90 basis points above the yield of the five year US Treasury note. Total demand reached USD 2 billion, exceeding the issuance size by four times, while the final yield was set 30 basis points below the initial guidance level.<\/p>\n
The transaction is particularly significant as it marks POSCO International\u2019s first independently executed bond issuance in overseas capital markets. Despite volatility in global markets driven by geopolitical developments, the company attracted strong investor demand.<\/p>\n
Prior to the issuance, the company held investor roadshows for institutional investors across the US, Europe and Asia. During these meetings, POSCO International presented its business portfolio focused on energy, materials and food, as well as its revenue structure and strategic position within the POSCO Group.<\/p>\n
Investor interest was primarily driven by the company\u2019s operations in the energy and food sectors. POSCO International is currently working to increase the production capacity of Cenex Energy in Australia while continuing to expand palm oil based food operations through PT PAR in Indonesia.<\/p>\n
The proceeds from the issuance are planned to be used for the repayment of existing foreign currency denominated debt and for general corporate financing purposes. Investor allocation was distributed regionally as 27% in the US, 6% in Europe and 67% in Asia. By investor type, asset management companies accounted for 65% of demand, banks represented 33% and other institutions made up the remaining 2%.<\/p>\n
Despite being the company\u2019s first global bond issuance, US based investors accounted for 27% of total allocations. This highlighted the acceptance of the company\u2019s credit profile among international investors.<\/p>\n
BNP Paribas, Citi, Credit Agricole, HSBC, Mizuho and Korea Development Bank acted as joint lead managers for the transaction. International credit rating agencies S&P and Moody\u2019s assigned investment grade ratings of \u201cBBB\u201d and \u201cBaa2\u201d, respectively.<\/p>\n
Company officials stated that the issuance strengthened their position in international financial markets and represented an important step toward diversifying funding sources. They also emphasized that POSCO International will continue expanding its global investor base while increasing its activities in the energy, materials and food sectors.<\/p>\n","protected":false},"excerpt":{"rendered":"The bond was priced at 90 basis points above the yield of the five year US Treasury note.…\n","protected":false},"author":2,"featured_media":63940,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[380],"tags":[647,649,654,656,651,655,648,652,653,650,442],"class_list":["post-63939","post","type-post","status-publish","format-standard","has-post-thumbnail","category-posco","tag-construction-news","tag-engineering-news","tag-global-construction-projects","tag-global-investment","tag-industry-insights","tag-infrastructure-export-deal","tag-infrastructure-updates","tag-latest-project-developments","tag-major-construction-news","tag-megaproject-news","tag-posco"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/63939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=63939"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/63939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/63940"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=63939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=63939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=63939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}