POSCO raises US$700 mln by selling debt overseas

SEOUL, March 20 (Yonhap) -- POSCO, the world's fourth-largest steelmaker, said
Friday it has raised US$700 million by selling debt overseas, becoming the first
Asian private company outside the financial sector to do so since the Wall
Street-triggered financial crisis in September last year.
The five-year dollar debt was sold at 8.95 percent, and the proceeds from the
debt sale will be used as operating capital, the company said.
The debt was sold at a lower than expected yield due to the slump in U.S.
Treasury yields.
The U.S Federal Reserve announcement on Wednesday to buy $300 billion in
longer-term Treasuries, lead to a sharp drop in U.S government bond yields, on
which dollar-denominated debt sales are benchmarked.
Demand for POSCO's debt offering was strong with the debt attracting more than $3
billion in orders.
Citigroup Inc., Goldman Sachs Group Inc., HSBC Holdings Plc and other global
investors managed the bond sale.
sam@yna.co.kr
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