Posco Sells Samurai Bonds at Higher Cost Than First Planned

Posco, the world’s third-biggest steelmaker, sold 41.4 billion yen ($538 million) of Samurai bonds, paying a higher relative yield than initially planned amid concern Europe’s debt crisis will derail global growth.

Posco, based in Pohang, South Korea, offered 30 billion yen of three-year, 1.67 percent bonds priced to yield 125 basis points more than the yen swap rate, and 11.4 billion yen of five-year, 2.03 percent notes at a spread of 150 basis points, according to data compiled by Bloomberg. Initial price guidance on the five-year tranche was between 100 and 140 basis points, a person with direct knowledge of the matter said Oct. 4.