Posco re-opened the US dollar market for Asian corporate borrowers with élan on Thursday night, as it rode the crest of a wave of bullish sentiment for US Treasuries. The $700 million five-year issue marked the first US dollar offering from an Asian corporate since Hong Kong China Gas's $1 billion issue in July 2008.
Whispers earlier in the week indicated that Korea's biggest steelmaker would have to pay up to 9.5%, and yet, despite a rapid drop in US Treasury yields between then and launch, Posco was able to maintain its spread premium and achieve funding inside 9% -- at a launch yield of 8.95%. On Wednesday, the Federal Reserve...
¬ Haymarket Media Limited. All rights reserved.
