PALMOILMAGAZINE, JAKARTA – POSCO International has made a strong debut in the international capital market after successfully issuing its first global bond worth US$500 million. The offering generated overwhelming investor interest, with total orders reaching approximately US$2 billion—four times the amount offered.
The successful issuance marks a significant milestone for the company as it expands access to international financing while reinforcing its position as a global enterprise with diversified operations spanning energy, materials, and food sectors.
The five-year bond was issued on June 23, 2026. Strong investor demand enabled the company to price the bond at a lower yield than initially indicated, allowing POSCO International to secure more competitive funding costs.
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Investor confidence is viewed as a strong signal of the company’s competitiveness and growth prospects, particularly amid ongoing uncertainty in global financial markets driven by geopolitical tensions in the Middle East.
Ahead of the issuance, the company conducted a series of investor presentations and meetings with institutional investors across the United States, Europe, and Asia. During these engagements, management highlighted its business model supported by energy, materials, and food operations, as well as its strategic role within the POSCO Group.
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Indonesian Palm Oil Operations Draw Investor Attention
One of the key factors attracting investor interest was the company’s growth strategy in the energy and food sectors. POSCO International continues to strengthen its LNG value chain through expanded production capacity at Cenex Energy Australia.
According to the company’s official statement, the food division is also accelerating its global expansion through investments in Indonesia’s palm oil industry. These activities are carried out through its plantation subsidiary, PT Prime Agri Resources Tbk, which has become one of the company’s key growth drivers in Southeast Asia’s food business.
The company’s palm oil assets in Indonesia are considered to provide a solid foundation for meeting global market demand while supporting long-term revenue diversification.
U.S. Investors Account for Significant Participation
By geographical distribution, Asian investors accounted for 67% of the bond allocation, followed by investors from the United States at 27% and Europe at 6%.
In terms of investor type, asset management firms represented 65% of participation, banking institutions accounted for 33%, while the remainder came from various financial institutions.
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The substantial participation from U.S. investors is regarded as a notable achievement, considering the United States remains one of the world’s largest bond investment markets. The result reflects growing international confidence in POSCO International’s business outlook and financial strength.
Proceeds from the bond issuance will be used to refinance a portion of the company’s existing foreign currency debt and support general corporate operations.
The transaction was jointly managed by BNP Paribas, Citi, Credit Agricole, HSBC, Mizuho, and Korea Development Bank. International credit rating agencies S&P and Moody’s assigned investment-grade ratings of BBB and Baa2, respectively, to the U.S. dollar-denominated bonds.
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POSCO International stated that the successful debut global bond issuance demonstrates international market recognition of the company’s competitiveness and growth potential. Going forward, the company intends to broaden its global investor base while strengthening growth pillars in energy, materials, and food businesses, including the continued development of its palm oil operations in Indonesia. (P2)
