POSCO Holdings Issues $700 Million Global Green Bonds

Funds Raised to Be Used for Energy Materials Business

POSCO Holdings announced on April 29 that it has successfully issued global green bonds worth $400 million with a 5-year maturity and $300 million with a 10-year maturity. This marks the first time POSCO Holdings has issued global bonds since its transition to a holding company structure.

Jang Inhwa, Chairman of POSCO Group, is conducting the 57th regular shareholders' meeting of POSCO Holdings. Photo by POSCO Holdings

The coupon rates were set at 137.5 basis points (1bp=0.01%) and 157.5 basis points above the U.S. 5-year and 10-year Treasury yields, respectively. This is 42.5 basis points lower for both the 5-year and 10-year bonds compared to the initial price guidance. POSCO Holdings plans to use the funds raised from this green bond issuance for its energy materials business.

POSCO Holdings stated, "Following the announcement of tariff impositions by the Trump administration in the United States on the 2nd of this month, the conditions for issuance were not favorable due to increased instability in the global bond market. Nevertheless, as the first Korean company to successfully issue both 5-year and 10-year long-term bonds, we have secured stable funding for future growth investments."

This foreign currency bond issuance attracted participation from 291 global institutional investors, with total orders reaching $6.6 billion. By region, the final allocation was 64% to Asia, 15% to Europe, and 21% to the United States. By investor type, 71% was allocated to asset management firms, 13% to banks, and 16% to insurance companies and other investors.

Previously, POSCO Holdings established a new sustainable finance management framework last month in preparation for this green bond issuance. In addition, from March 31 to April 4, the company held investor roadshows for global institutional investors in the United States, Europe, Hong Kong, and Singapore ahead of the bond issuance.

This content was produced with the assistance of AI translation services.