POSCO's Green Bonds Soar High
South Korea's POSCO successfully raises $500 million through global green bonds, earmarked for domestic facility upgrades. The three-year U.S. dollar bond, offered at the interest rate of U.S. Treasurys plus 1.1 percent, garnered overwhelming investor interest, reaching $4 billion. The funds will fuel the construction of a 2.5-million-metric-ton electric furnace in POSCO's Gwangyang mill, enhancing its sustainable steel production.
In a strategic move towards sustainable growth, South Korean steel giant POSCO has triumphed in a green bond issuance, securing $500 million for crucial domestic facility investments. The three-year U.S. dollar bond, carrying an interest rate mirroring three-year U.S. Treasurys plus 1.1%, witnessed remarkable success in the market.
Commencing investor outreach on January 3, POSCO's green bond offering attracted significant attention, with approximately 200 institutional investors contributing orders totaling an impressive $4 billion. This robust response underlines the strong market confidence in POSCO's commitment to green initiatives.
The allocated funds are earmarked for a pivotal project, a 2.5-million-metric-ton electric furnace to be integrated into POSCO's existing steel mill in Gwangyang, strategically located 287 kilometers south of Seoul. This forward-looking initiative aligns with POSCO's dedication to environmentally conscious practices and sustainable steel production.
POSCO, a key player in the global steel industry, boasts additional integrated steel facilities, including one in Pohang, located 262 kilometers southeast of Seoul, and an overseas plant in Indonesia. The company's expansion and commitment to green bonds signal its proactive stance in shaping the future of sustainable steel manufacturing.
POSCO's successful venture into the green bond market, securing $500 million, underscores its leadership in adopting environmentally responsible financial practices. The overwhelming response from institutional investors affirms market confidence in POSCO's commitment to green investments. As the funds are directed towards a cutting-edge electric furnace, POSCO positions itself as a frontrunner in sustainable steel production, paving the way for a greener and more resilient future.