Seoul: South Korea’s Posco, the world’s No. 4 steel maker, said on Thursday it had sold a 50 billionyen (US $553 million) Samurai bond to fund its investment in an iron ore miner and to purchase raw materials.
The company said it had sold the three-year bond to Sumitomo Mitsui Banking Corp (SMBC) and would use part of the proceeds to fund a 6.48% stake in Brazilian iron ore miner Namisa.
Posco is a part of an Asian consortium which agreed in October to spend US $3.1 billion to take a 40% stake in Namisa.
Samurai bonds are yen bonds issued in Japan by non Japanese entities.