POSCO raised $700 million through a two-tranche green bond issuance, backed by investor demand exceeding $6.6 billion.
The bonds were priced significantly tighter than initial guidance, indicating strong market confidence.
Proceeds will fund new and existing green projects, aligning with POSCO’s sustainability agenda
South Korean steelmaker POSCO Holdings has successfully raised $700 million through a heavily oversubscribed green bond issuance, reinforcing investor confidence in its sustainability strategy.
The funding was split across two tranches: $400 million in a five-year bond and $300 million in a 10-year bond. Investor appetite was robust, with orders topping $3.8 billion for the five-year and $2.8 billion for the 10-year—more than 9x oversubscribed combined.
RELATED ARTICLE: GM and POSCO Future M to Expand EV Battery Supply Chain in North America
Pricing reflected the strong demand. The five-year bond priced at Treasuries +137.5 basis points, while the 10-year came in at +157.5 basis points—both 42.5 basis points tighter than initial guidance. According to a term sheet reviewed by Reuters, this underscores investor willingness to accept lower yields in support of POSCO’s green transition.
“The funds raised would be used to finance or refinance the company’s new or existing green projects,” POSCO told investors, highlighting its commitment to low-carbon growth.
The offering comes amid rising pressure on heavy industry players to decarbonize and as institutional investors increasingly direct capital toward ESG-aligned issuances.
Follow ESG News on LinkedIn
