New York, January 13, 2026, 12:05 (EST) — Regular session
- Shares of POSCO Holdings traded in the U.S. jumped roughly 12% by midday.
- POSCO announced it secured $700 million through a two-tranche U.S. dollar bond offering that attracted $6.6 billion in bids.
- Attention shifts to how refinancing plays out next and the earnings report due Jan. 29.
POSCO Holdings Inc’s U.S.-listed shares jumped roughly 12% to $60.39 Tuesday, marking their biggest surge in months. The South Korean steelmaker disclosed it raised $700 million through global bonds. (AJU PRESS)
This move is significant since offshore funding remains costly and patchy for industrial borrowers, with investors quick to react negatively to any signs of tougher refinancing conditions. For POSCO, securing dollar funding on stricter terms is seen as a statement about its balance sheet, not merely a treasury maneuver.
It also shines a light again on what moves the stock daily: steel cycle risk, tariff policy chatter, and how much financial cushion the group holds when markets get volatile.
POSCO revealed the deal is divided into $400 million in five-year notes and $300 million in 10-year notes, with plans to use the funds primarily to refinance existing debt. Coupon rates came in at 4.5% for the shorter bonds and 5.0% for the 10-year tranche, according to a report. (Businesskorea)
Demand far exceeded supply. Bookbuilding attracted roughly 180 institutional investors, placing orders around $6.6 billion—over nine times the size of the offering. Most of the appetite reportedly came from Asia.
As the orderbook expanded, pricing sharpened. The final “spread”—the additional yield investors require over U.S. Treasuries—closed near 0.75 percentage points for the five-year and 0.90 for the 10-year, tightening roughly 0.4 points from the starting marketing range, according to the same reports.
The company described the sale as a gauge of investor interest amid a tough period for the sector. A POSCO official pointed to concerns raised during investor discussions, including possible shifts in U.S. and European tariff policies, China’s steel oversupply, and ongoing geopolitical risks, according to Seoul Economic Daily.
For equity investors, the situation is a double-edged sword. A bond priced tightly can reduce interest expenses and ease refinancing worries in the short term, but it won’t shift the fundamental demand challenges if steel prices drop or trade tensions escalate.
There are clear risks here. Should tariffs ramp up quicker than anticipated, or if Chinese exports continue to drag regional steel prices lower, POSCO’s margins might still face pressure despite cheaper funding. That surge in shares on Tuesday could vanish just as fast.
Traders are keeping an eye on whether the rally sustains as U.S. credit markets progress through the week, and if POSCO plans additional offshore borrowing after securing this refinancing tranche.
