These funds, raised through ESG-based green bonds used to finance environmentally friendly projects, are planned to be utilized in POSCO Holdings' energy materials business line. The focus will be on electric vehicles, renewable energy and energy efficiency projects.
Despite the instability in the bond market following the US tariffs announced on April 2, POSCO Holdings became the first South Korean company to overcome challenging market conditions and successfully issue bonds. This step secured the company's long-term investment resources and provided a strong impetus to its sustainable growth strategy.
The yield rates set at the time of the initial offer were 180 basis points over the US Treasury yield for 5-year bonds and 200 basis points for 10-year bonds. However, due to the strong demand from investors, the final spreads were set at 137.5 and 157.5 basis points, respectively.
A total of 291 institutional investors participated in the issuance, raising USD 6.6 billion. According to the regional breakdown, 64% of the bonds were sold to investors in Asia, 21% in the US and 15% in Europe. In terms of investor types, asset managers accounted for the largest share with 71%, followed by banks (13%), insurance companies and other investors (16%).
POSCO Holdings supported this strong investor interest with its Sustainable Financing Framework and investor roadshows in March. Between March 31 and April 4, the roadshows were held in the US, Europe, Hong Kong and Singapore, where the company's ESG strategies, investment plans in energy materials and growth vision were presented in detail.
Global credit rating agencies S&P and Moody's upheld POSCO Holdings' financial soundness and rated the bonds 'A-' and 'Baa1', respectively.
This successful bond issuance reinforced global investors' confidence in POSCO Holdings despite the US tariff policies and made a significant contribution to the company's sustainability-oriented growth journey.
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