About 4 Trillion in POSCO Corporate Bonds... Surpassing KT's Record in Just One Day

Demand Forecast Shows Subscription Amount About 10 Times Target
Plan to Use Secured Funds for Debt Repayment

[Asia Economy Reporter Hwang Yoon-joo] POSCO surpassed KT's record for the largest amount of funds raised in a corporate bond demand forecast just one day after KT set it. Institutional investors placed purchase orders totaling nearly 4 trillion won.

According to the investment banking (IB) industry on the 5th, the demand forecast for POSCO's corporate bond issuance attracted funds exceeding 3.97 trillion won, more than 10 times the planned amount of 350 billion won.

Originally, POSCO planned to issue 50 billion won in 2-year bonds, 200 billion won in 3-year bonds, and 100 billion won in 5-year bonds, but institutional demand surged significantly. The 2-year bonds attracted 900 billion won, and the 3-year bonds drew 2.115 trillion won, recording the highest competition rate. The 5-year bonds received 955 billion won in orders.

As a result, POSCO was able to raise funds at rates up to 63 basis points (1bp = 0.01 percentage points) lower than the average market rate. POSCO plans to use the secured funds for debt repayment.

POSCO broke KT's record for the largest amount of funds raised since the introduction of public corporate bond demand forecasts in 2012, just one day after KT set the record. KT received purchase orders worth 2.885 trillion won in a demand forecast conducted for a 150 billion won corporate bond issuance the previous day.