POSCO issues $2 billion bonds, first Korean firm to tap overseas market in 2023

[Photo by MK DB]

South Korean steel giant POSCO successfully issued $2 billion in three-tranche dollar-denominated bonds Monday, becoming the country’s first Korean Inc. to raise funds via overseas debt sale this year.

The company issued $700 million in three-year bonds, $1 billion in five-year bonds, and $300 million in 10-year bonds. They were sold with a coupon rate of 190 basis points, 220 basis points, and 250 basis points above the U.S. Treasury yield, respectively, with corresponding maturity years.

POSCO is the first Korean company to sell dollar-denominated bonds in the global market after the U.S. central bank delivered an interest rate hike of 50 basis points on Dec. 15. It is also the largest amount ever issued by POSCO.

The company plans to use the proceeds to explore opportunities for future growth and prepare for possible liquidity shortages amid the rising interest rate environment.

POSCO last week issued 700 billion won ($564.7 million) in unsecured bonds after receiving 3.97 trillion won in orders. It also issued $1 billion in global bonds in July last year.

Shares of POSCO were trading 0.52 percent higher at 290,500 won Tuesday as of 1:30 p.m.