(LEAD) POSCO-samurai bond sale

SEOUL, Dec. 25 (Yonhap) -- POSCO, the world's fourth-largest steelmaker, said Thursday that it has raised 50 billion yen (US$553 million) by selling bonds in the Japanese currency to fund the takeover of a Brazilian ore mining firm and imports of raw materials.

The privately placed samurai bonds will mature in three years and carry an
interest rate of 1.6 percentage point 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 said the successful bond sale, which comes amid an
international funding squeeze, reflects POSCO's high credibility in the
international financial market.
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