On the 29th, POSCO Holdings announced that it successfully issued a total of $700 million (about 1 trillion won) in global green bonds in the overseas bond market on the 28th.
The green bonds issued this time consist of $400 million (about 574 billion won) for 5-year maturities and $300 million (about 431 billion won) for 10-year maturities.
This is the first time that POSCO Holdings has issued global bonds since transitioning to a holding company structure.
Green bonds are a type of ESG (Environmental, Social, and Governance) bond used to raise funds for projects that contribute to environmental preservation, such as electric vehicles, renewable energy, and energy efficiency improvements. POSCO Holdings noted that it plans to use the funds raised this time for its energy materials business.
The initial presented interest rates were 180 basis points (1 basis point = 0.01 percentage point) added to the 5-year U.S. government bonds for the 5-year bonds, and 200 basis points added to the 10-year U.S. government bonds for the 10-year bonds. According to demand forecasting results, 290 institutions participated, totaling orders amounting to $6.6 billion.
The final additional charges were decided at 137.5 basis points and 157.5 basis points, respectively.
Investors were allocated regionally with 64% from Asia, 15% from Europe, and 21% from the United States, and by type with 71% asset management companies, 13% banks, and 16% insurance companies and other investors.