Seoul: POSCO Holdings announced on Tuesday that it has successfully raised $700 million by issuing green bonds in international markets. This marks the company's inaugural bond sale on a global scale since it restructured into a holding company format in 2022. The funds are designated to support investments in its energy materials business.
According to Yonhap News Agency, the issuance comprises two segments: $400 million in five-year bonds and $300 million in 10-year bonds. Green bonds are specifically allocated for projects that have positive environmental impacts, including initiatives related to electric vehicles, renewable energy, and energy efficiency.
POSCO Holdings intends to channel the proceeds into its energy materials sector, which the company identifies as a potential catalyst for growth beyond its traditional steelmaking operations. The interest rates for the bonds have been set at 137.5 basis points for the five-year bonds and 157.5 basis points for the 10-year bonds, both above the corresponding U.S. Treasury yields.