Hyundai Steel’s debut bonds rally hard

Hyundai Steel prices a $500 million debut bond on Friday, offering investors a yield pick-up and the chance to diversify.
The Kia SL, made with Hyundai Steel (AFP)
The Kia SL, made with Hyundai Steel (AFP)

Hyundai Steel, Korea’s second-largest steel producer, priced a debut $500 million five-year bond at Treasuries plus 249bp early Friday morning.

The company started marketing the deal with an initial guidance in the area of Treasuries plus 270bp and tightened this significantly to Treasuries plus 249bp to 251bp, eventually pricing at the tight end of the range.

Bank of America Merrill Lynch, Citi, Credit Suisse, HSBC and J.P. Morgan were joint bookrunners.

Hyundai Steel is one of the few triple-B-rated Korean companies to issue dollar bonds and offered investors a chance to diversify their portfolios. Hyundai Steel’s issue is rated Baa3 by Moody’s and BBB...

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