Posco Holdings announced on Tuesday that it had successfully raised $700 million through the issuance of global green bonds in the overseas bond market, securing a stable source of funding for the company's future growth initiatives.
Despite challenging market conditions driven by increased volatility following the US Trump administration’s recent tariff announcement, Posco Holdings became the first Korean company to successfully issue both five-year and ten-year bonds.
The issuance comprises $400 million in five-year bonds and $300 million in ten-year bonds. It also marks the company’s first global bond issuance since its transition to a holding company structure in 2022.
Green bonds are used to finance environmentally sustainable projects such as electric vehicles, renewable energy and energy efficiency improvements. Posco Holdings intends to use the proceeds from this issuance to support its energy materials business.
Regionally, 64 percent of the bonds were allocated to Asian investors, 15 percent to European investors and 21 percent to investors in the US.
By investor type, asset management firms received 71 percent of the allocation, banks 13 percent and insurance companies and other investors 16 percent.
The participation of major global insurers and asset managers not only broadened Posco Holdings’ investor base but also underscored strong investor confidence, despite concerns about the steel and energy materials sectors amid US trade policy uncertainties, the company announced.
In March, global credit rating agencies S&P and Moody’s reaffirmed Posco Holdings’ bond ratings at “A-“ and “Baa1,” respectively, citing the company’s solid financial health.
hykim@heraldcorp.com
