POSCO raises US$700 mln in global bond sale

▲ This undated file photo provided by POSCO Holdings Inc. shows the POSCO Center, its office building in Daechi-dong, southern Seoul. (PHOTO NOT FOR SALE) (Yonhap)

POSCO-bond sale

POSCO raises US$700 mln in global bond sale

SEOUL, Jan. 13 (Yonhap) -- South Korean steelmaker POSCO said Tuesday it has raised US$700 million through a global bond sale in overseas markets to refinance maturing corporate debt.

The deal marks the first dollar-denominated global bond issuance by a South Korean company this year, the company said in a press release.

The bonds were issued in two tranches: $400 million in five-year notes and $300 million in 10-year notes, it said.

"POSCO's $700 million fundraising has not only contributed to the country's dollar liquidity but has also helped improve the credit standing of Korean companies," an industry official said.

Helped by strong investor demand, POSCO priced the bonds at relatively low spreads of 75 basis points for the five-year notes and 90 basis points for the 10-year notes over corresponding U.S. Treasury yields.

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