Posco taps bond market with $700 million deal

Korea's leading steelmaker attracts strong demand for its 10-year bond, despite anxieties about its purchase of Daewoo International.

The world’s third biggest steelmaker, Pohang Iron and Steel Company Posco, priced its second international bond issue in two years late Thursday.

According to the company, Posco plans to use the proceeds from the sale to pay for raw materials and overseas investments, such as the construction of steel mills in foreign countries and the development of mines for raw materials.

The $700 million 144aRegulation S issue pays a 4.25% coupon, and was re-offered to investors at 99.557 to yield 4.305% to a maturity date of October 28, 2020. It is the first 10-year global bond by a South Korean private company since 2007.

Posco last raised cash through a public...

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