POSCO International Issues First Global Bond, Raising $500 Million

POSCO International has established a foothold in the overseas capital market by issuing its first-ever global bond.

According to industry sources on June 23, POSCO International completed the issuance of a $500 million (approximately 770 billion won) global bond with a five-year maturity.

The bond was issued as a single tranche, with the final interest rate set at 90 basis points above the five-year U.S. Treasury yield.

The total order volume reached $2 billion, four times the issuance amount, leading to a final issuance rate that was 30 basis points lower than the initial price guidance (IPG).

This issuance marks POSCO International's first public bond offering conducted independently in the overseas capital market. Despite increased volatility in global financial markets due to heightened tensions in the Middle East, the company secured significant investment demand, confirming global investors' trust.

Notably, even in its inaugural issuance, U.S. investors accounted for 27% of the bond, indicating a solid foundation for stable overseas funding in the future.

Prior to the bond issuance, POSCO International held investment briefings and global calls targeting major institutional investors in the U.S., Europe, and Asia, highlighting its balanced business portfolio centered on energy, materials, and food, as well as its vision as a core subsidiary of the POSCO Group.

Investors particularly focused on future growth strategies, such as enhancing the LNG value chain through increased production capacity at Australia’s Senex Energy and expanding food business operations centered on its Indonesian palm subsidiary (PT.PAR).

In terms of investor composition, Asia accounted for 67%, followed by the U.S. at 27% and Europe at 6%. By type, asset management firms represented 65%, banks 33%, and other institutions 2%.

The joint bookrunners for this bond issuance were BNP Paribas, Citigroup, Crédit Agricole, HSBC, Mizuho Bank, and the Korea Development Bank.

Global credit rating agencies S&P and Moody's assigned POSCO International's dollar-denominated bonds investment-grade ratings of 'BBB' and 'Baa2', respectively.

The funds raised will be used to repay existing foreign currency borrowings and for general operating expenses.

A representative from POSCO International stated, "The issuance of the global bond is a testament to our competitiveness and growth potential in the overseas capital market. We aim to establish a stable funding structure through currency diversification and an expanded base of overseas investors, strengthening our position as a leading global issuer."