InfoSAWIT, JAKARTA – POSCO International has made a strong debut in the international debt market after its inaugural US$500 million global bond issuance attracted approximately US$2 billion in investor orders, underscoring growing confidence in the company's diversified business portfolio, including its expanding palm oil operations in Indonesia.
The five-year U.S. dollar-denominated bond, issued on June 23, was oversubscribed by nearly four times, allowing the South Korean trading and investment company to secure financing at a lower yield than initially indicated due to robust global demand.
The successful issuance marks a significant milestone in POSCO International's efforts to diversify its funding sources while strengthening its position as a global business spanning the energy, materials, and food sectors.
According to a company statement received by InfoSAWIT on Sunday, investor confidence remained resilient despite continued volatility in global financial markets driven by geopolitical tensions in the Middle East.
Ahead of the transaction, the company conducted a series of investor roadshows across the United States, Europe, and Asia, presenting its long-term growth strategy and diversified business model supported by energy, materials, and food operations. Management also highlighted POSCO International's strategic role as one of the core operating companies within the POSCO Group.
Indonesian Palm Oil Operations Attract Investor Interest
Among the key drivers of investor interest was the company's strategy to expand both its energy and food businesses.
In the energy sector, POSCO International continues to strengthen its liquefied natural gas (LNG) value chain through increased production capacity at Cenex Energy Australia.
Meanwhile, the company's food business has gained momentum through continued investment in Indonesia's palm oil industry, where it operates through listed plantation subsidiary PT Prime Agri Resources Tbk (SGRO).
The Indonesian palm oil business has become one of the company's key growth platforms in Southeast Asia, providing long-term exposure to global food demand while enhancing earnings diversification.
The company believes its plantation assets in Indonesia offer a solid foundation for supplying international markets and supporting sustainable long-term revenue growth amid increasing demand for agricultural commodities.
Asian Investors Lead Bond Subscription
Asian investors accounted for the largest share of the bond allocation at 67%, followed by investors from the United States (27%) and Europe (6%), reflecting broad international participation.
By investor category, asset management firms represented 65% of total demand, while banks accounted for 33%, with the remainder allocated to other financial institutions.
The strong participation of U.S.-based investors was viewed as particularly significant, given the country's status as one of the world's largest institutional bond markets. Their participation signals growing international recognition of POSCO International's financial strength and long-term growth prospects.
Proceeds from the bond issuance will be used primarily to refinance portions of the company's existing foreign currency borrowings and to support ongoing corporate operations.
The transaction was jointly managed by BNP Paribas, Citi, Crédit Agricole, HSBC, Mizuho, and the Korea Development Bank.
The U.S. dollar-denominated notes received investment-grade ratings of BBB from S&P Global Ratings and Baa2 from Moody's Ratings, reinforcing market confidence in the company's credit profile.
POSCO International said the successful bond offering demonstrates international investors' recognition of the company's competitiveness and long-term growth strategy. Going forward, the company plans to broaden its global investor base while strengthening businesses across its core energy, materials, and food segments, including the continued expansion of its Indonesian palm oil operations. (T2)
