POSCO, the world's fourth-largest steel maker, has raised 50 billion yen ($553 million) by selling bonds in the Japanese currency to fund the takeover of a Brazilian ore mining firm and imports of raw materials, according to Yonhap News Thursday.
The privately placed samurai bonds will mature in three years and carry an interest rate of 1.6 percentage points above the Yen Tibor, or the Japanese inter-bank interest rate, POSCO said.
A Samurai bond is a yen-denominated bond floated in Japan by non-Japanese firms.
The proceeds will be used to buy a stake in the Brazilian ore miner, Namisa, and settle import bills, the company said.
In October, POSCO decided to spend about $500 million to purchase a 6.48 percent stake in Namisa in an effort to secure a stable supply line of iron ore, a key raw material for making steel.
A company official was quoted as saying the successful bond sale, which comes amid an international funding squeeze, reflects POSCO's high credibility in the international financial market.