Posco International will sell green bonds worth 80 billion won ($70 million) to finance its efforts on the environmental, social and corporate governance (ESG) fronts, the company said Sunday.
The ESG bond issue is part of the firm’s plan to raise 150 billion won in the debt market. The rest, 70 billion won, is to be raised through regular bond offerings.
The volume of bond sales could be even greater, the trading arm of steelmaker Posco said, as institutional investors demanded as much as 500 billion won in a survey on Friday.
The ESG bond is a type of sustainability debt offering aimed to finance corporate activities in environmental, social responsibility and governance improvement, Posco said.
According to the company, it is the first trading company in Korea to issue such a green bond. The money financed would be invested in the company’s renewable energy businesses and electric vehicle parts businesses, Posco International said.
“The successful demand forecast is the result of positive evaluation from investors, of the company’s sustainable business structure and potentials for future growth,” a Posco International official said in a press release.
The company said it has been making efforts to promote ESG business management in the past years.
In March 2020, Posco International announced its commitment to go green with its palm oil business, and adopted a “No Deforestation, No Peat, No Exploitation” policy.
The company’s subsidiary Posco SPS has also entered the environment-friendly vehicle market to produce electric vehicle motor cores and hydrogen fuel cell separators for fuel cell EVs, the company said.
By Jo He-rim (email@example.com