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Posco Holdings raises $700 million in global green bond sale

Published: 29 Apr. 2025, 13:46 Updated: 29 Apr. 2025, 14:43

The Posco Center building in Gangnam District, southern Seoul, is pictured on Feb. 8, 2024. [YONHAP]

Posco Holdings said Tuesday it has raised $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 environmental 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 rate 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.

Yonhap