S.Korea POSCO sells $300 mln, 10-yr bond -leads

HONG KONG, Aug 3 (Reuters) POSCO Co. Ltd., the world's fifth-biggest steel maker, sold on Thursday 0 million in 10-year bonds at 40 basis points over mid-swaps, lead managers said.

The A2/A-minus-rated bonds, carrying a coupon of 5.875 percent, were priced at 99.671. POSCO said last week the funds would be used to repay maturing debt and purchase raw materials.

POSCO had revised the yield guidance to 40 basis points over mid-swaps from an initial 40 to 45 basis points over after the offer was 2.5 times subscribed.

A source familiar with the deal said Asian buyers took 53 percent of the offer, while European investors accounted for 31 percent and the remainder went to U.S. offshore accounts.

By investor type, banks took 49 percent, asset managers 36 percent, pension funds and insurance companies 12 percent and others 3 percent, the source said.

ABN AMRO, HSBC and UBS handled the sale.

In June, POSCO sold 50 billion yen (5.7 million) in seven-year Samurai bonds.

REUTERS CS BD1726