POSCO International and HSBC hold a signing ceremony for a digital bond issuance at HSBC’s headquarters in Jung-gu, Seoul, on April 16. From right: POSCO International planning chief Jeong Gyeong-jin; Lee Sang-ho, CEO of HSBC Securities. [Photo=POSCO International]
POSCO International said April 23 it has issued a blockchain-based “digital bond,” the first such issuance by a nonfinancial company in South Korea.
A digital bond uses blockchain technology across the full process — issuance, registration, trading and settlement — a structure the company said can strengthen security, shorten settlement times and broaden access for global investors compared with conventional bonds.
The bond was issued through a private placement totaling about 1.4 trillion won, or about HK$780 million, the company said.
HSBC served as sole arranger. The company said it is the second digital bond case in South Korea after Mirae Asset Securities, and the first by a nonfinancial firm.
POSCO International said the issuance shortened the settlement period for its foreign-currency bonds to three business days from five.
The company said it expects faster settlement to improve cash turnover and operating efficiency, while expanding investor access as a global trading company.
It also said it expects lower funding costs through a temporary issuance-cost subsidy program offered by Hong Kong financial authorities to promote digital bonds.
POSCO International, a global trading company focused on energy, materials and food, said stable foreign-currency funding is critical to its business. It said it will use the issuance to accelerate the digitalization of finance and respond proactively to developments in smart contracts and the security token offering (STO) market.
POSCO International and HSBC held a signing ceremony April 16 at HSBC’s headquarters in Jung-gu, Seoul. Attendees included Jeong Gyeong-jin, head of POSCO International’s management planning division, and Lee Sang-ho, CEO of HSBC Securities. The two sides said they will strengthen cooperation in digital finance, including adopting blockchain and digital financial technologies, improving funding efficiency and advancing digital transformation.
“This issuance is a milestone that realizes digital transformation in funding, following last year’s introduction of a blockchain-based global payment system,” Jeong said. “Based on our DX master plan, we are pushing forward a full-scale digital shift, and we will respond proactively to changes in the digital finance environment, including the STO market, to strengthen our funding competitiveness in global markets.”
A digital bond uses blockchain technology across the full process — issuance, registration, trading and settlement — a structure the company said can strengthen security, shorten settlement times and broaden access for global investors compared with conventional bonds.
The bond was issued through a private placement totaling about 1.4 trillion won, or about HK$780 million, the company said.
HSBC served as sole arranger. The company said it is the second digital bond case in South Korea after Mirae Asset Securities, and the first by a nonfinancial firm.
POSCO International said the issuance shortened the settlement period for its foreign-currency bonds to three business days from five.
The company said it expects faster settlement to improve cash turnover and operating efficiency, while expanding investor access as a global trading company.
It also said it expects lower funding costs through a temporary issuance-cost subsidy program offered by Hong Kong financial authorities to promote digital bonds.
POSCO International, a global trading company focused on energy, materials and food, said stable foreign-currency funding is critical to its business. It said it will use the issuance to accelerate the digitalization of finance and respond proactively to developments in smart contracts and the security token offering (STO) market.
POSCO International and HSBC held a signing ceremony April 16 at HSBC’s headquarters in Jung-gu, Seoul. Attendees included Jeong Gyeong-jin, head of POSCO International’s management planning division, and Lee Sang-ho, CEO of HSBC Securities. The two sides said they will strengthen cooperation in digital finance, including adopting blockchain and digital financial technologies, improving funding efficiency and advancing digital transformation.
“This issuance is a milestone that realizes digital transformation in funding, following last year’s introduction of a blockchain-based global payment system,” Jeong said. “Based on our DX master plan, we are pushing forward a full-scale digital shift, and we will respond proactively to changes in the digital finance environment, including the STO market, to strengthen our funding competitiveness in global markets.”
* This article has been translated by AI.
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