South Korean steel giant POSCO Holdings has successfully raised US$700 million through a two-tranche green bond issuance, the company announced on Tuesday.
The offering comprised a US$400 million five-year bond and a US$300 million 10-year bond, both of which were significantly oversubscribed. The five-year notes were priced at 137.5 basis points over US Treasuries—42.5 bps tighter than initial guidance—while the 10-year notes were priced at Treasuries plus 157.5 basis points, also 42.5 bps tighter than originally indicated.
According to documents reviewed by Reuters, investor demand was strong, with over US$3.8 billion in orders for the five-year tranche and US$2.8 billion for the 10-year.
POSCO stated that proceeds from the green bond issuance will be allocated toward financing or refinancing eligible green projects, in line with its sustainability goals.
The move underscores growing investor appetite for ESG-linked instruments and highlights POSCO’s ongoing efforts to support the transition to low-carbon steel production.–REUTERS
