POSCO Holdings raises $700 mln in global green bond sale

SEOUL, April 29 (Yonhap) -- POSCO Holdings said Tuesday it has raised US$700 million by selling green bonds in overseas markets to fund investments in its energy materials business.

This is the company's first global bond sale since its reorganization into a holding company structure in 2022.

The green bonds were issued in two trenches: $400 million in five-year bonds and $300 million in 10-year bonds, the company said in a press release.

Green bonds are used to fund environmentally beneficial projects, such as those related to electric vehicles, renewable energy and energy efficiency.

POSCO Holdings plans to use the proceeds to strengthen its energy materials business, which it sees as a new growth driver for the steelmaking-focused group.

The company set the bond interest rates at 137.5 basis points for the five-year bonds and 157.5 basis points for the 10-year bonds over corresponding U.S. Treasury yields.

kyongae.choi@yna.co.kr
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