Issued green bonds in two tranches in the overseas bond market on April 28… $400 million with a 5-year maturity and $300 million with a 10-year maturity
First successful global bond issuance since POSCO Holdings’ transition to a holding company structure
Funds to be utilized as investment resources for the group’s future core businesses, including energy materials
POSCO Holdings successfully issued global green bonds in two tranches on April 28 in the overseas bond market, with $400 million in 5-year bonds and $300 million in 10-year bonds.
This marks the first time POSCO Holdings has issued global bonds since transitioning to a holding company structure.
Green bonds are an ESG bond used to raise funds for projects that contribute to environmental preservation, such as electric vehicles, renewable energy, and energy efficiency improvements. POSCO Holdings plans to utilize the funds raised through this green bond issuance for its energy materials business.
Despite unfavorable issuance conditions due to increased instability in the global bond market following the U.S. Trump tariff announcement on April 2, POSCO Holdings became the first Korean company to successfully issue 5-year and 10-year long-term bonds, securing stable investment resources for future growth.
The initial offered yield was set at the 5-year U.S. Treasury rate plus 180bp for the 5-year bonds and the 10-year U.S. Treasury rate plus 200bp for the 10-year bonds.
The book-building results showed participation from approximately 291 institutions with orders totaling $6.6 billion.
POSCO Holdings finalized the issuance size at $700 million with final spreads set at 137.5bp and 157.5bp, respectively.
Final investors were allocated by region with Asia at 64%, Europe at 15%, and the United States at 21%, and by type with asset managers at 71%, banks at 13%, and insurance companies and other investors at 16%. The issuance saw participation from major global insurance companies and asset managers, successfully diversifying investors and attracting high-quality investors. This confirmed investors’ confidence in POSCO Holdings despite concerns about steel and energy materials businesses due to U.S. tariff policies.
Global credit rating agencies S&P and Moody’s assigned bond credit ratings of ‘A-’ and ‘Baa1’ respectively in March this year, maintaining the same ratings as before, considering POSCO Holdings’ sound financial ratios.
For this green bond issuance, POSCO Holdings newly established a Sustainable Financing Framework in March this year. Before this bond issuance, from March 31 to April 4, POSCO Holdings held investor roadshows for numerous global institutional investors in the United States, Europe, Hong Kong, and Singapore, actively promoting the group’s ESG management strategy, energy materials business investment plans, growth strategies, and excellent credit quality to enhance major investors’ understanding.
▲Chairman In-hwa Chang is conducting the 57th POSCO Holdings ordinary general meeting of shareholders.