Advised POSCO on the Issuance of Global Bonds Worth $2 billion

Lee & Ko advised POSCO on its issuance of global bonds worth $2 billion, which is the largest amount ever issued by POSCO. This global bond was issued as a multi-tranche, fixed-rate bond, with a three-year maturity tranche of $700 million, a five-year maturity tranche of $1 billion, and a 10-year maturity tranche of $300 million. This transaction was the first dollar-denominated, publicly issued bonds issued by a Korean company shortly after the Federal Reserve System announced a 50 basis point interest rate hike. Despite the volatile financial market, POSCO was able to successfully issue this global bond at a favorable spread, and has reaffirmed its excellent creditworthiness among global investors and market experts.

For this transaction, Lee & Ko advised POSCO on various matters in relation to the issuance of the bonds, including advising on applicable Korean laws and regulations, reviewing agreements and offering circular, and reviewing government permits and authorizations. As large-scale bond issuances similar to this transaction are carried out in accordance with the investment demands of global investors, prompt and timely fulfillment of relevant needs is of utmost importance. Lee & Ko successfully led the transaction by providing accurate and efficient advice based on Lee & Ko’s profound experience and extensive knowledge in the matter.

In addition to the above transaction, Lee & Ko continues to demonstrate its expertise in financing transactions, which have become increasingly important in today’s rapidly changing market conditions, by advising on a number of significant deals during the first half of 2023, including a $1 billion bond issuance by Korea National Oil Corporation, a $500 million bond issuance by Kookmin Bank, a $500 million overseas bond issuance by L&F, a first-ever $300 million bond issuance by Korea Ocean Business Corporation, a $900 million bond issuance by SK On guaranteed by Kookmin Bank, a EUR 75 million bond issuance by Korea Development Bank, and a $300 million bond issuance by SK Broadband.