Posco International raises $500 million in first global bond issuance

Posco International issued a global bond for the first time in its history on Tuesday.

The bond is structured as a single tranche with a five-year maturity and a face value of $500 million (about 770 billion won). The coupon rate was set at 90 basis points above the five-year US Treasury yield. Total orders reached $2 billion — roughly four times the issuance amount — allowing the company to price the bond 30 basis points tighter than the initial price guidance.

By region, Asian investors accounted for 67 percent of the order book, followed by US investors at 27 percent and European investors at 6 percent. By investor type, asset managers made up 65 percent, banks 33 percent and others 2 percent.

Citi, HSBC and Korea Development Bank served as joint bookrunners. S&P and Moody's assigned investment-grade ratings of BBB and Baa2, respectively, to the dollar-denominated bond.

The issuance marks Posco International's first global bond launched independently in overseas capital markets. The company drew strong interest from global investors despite heightened volatility in financial markets stemming from tensions in the Middle East, with investors recognizing its business competitiveness and growth potential.

Ahead of the issuance, Posco International held investor roadshows targeting major institutional investors in the United States, Europe and Asia. The company presented its balanced business portfolio anchored in energy, materials and food, its stable earnings structure, and its role as a core operating subsidiary of Posco Group.

The company plans to use the proceeds to repay existing foreign-currency debt and fund general working capital needs.

"This global bond issuance is a testament to Posco International's competitiveness and growth potential in overseas capital markets," a company official said. "We will build a stable funding framework by diversifying our borrowing currencies and expanding our overseas investor base, and strengthen our standing as a premier global issuer."