Posco said Tuesday it has become the world’s first steelmaker to issue $500 million worth of environmental, social and governance-related bonds.
ESG bonds are issued to finance sustainable outcomes within three categories -- environmental friendliness, social responsibility and improvement in governance.
Posco has issued ESG bonds including green bonds that finance eco-friendly projects and social bonds that help alleviate social issues such as job creation.
“The funds raised from the bonds will be used to expand Posco’s investments in batteries for electric vehicles, and will also be used to support the growth of the steel industry,” said Posco Chairman Choi Jeong-woo.
To issue the bonds, Posco established a sustainable financing framework in April to match the standards of its green bonds and social bonds to that of the International Capital Market Association.
The five-year bonds have an interest rate of 2.874 percent, and will be listed on Singapore Exchange, the company said.
By Cho Hyee-su(firstname.lastname@example.org