POSCO Holdings Inc. has raised $700 million through a dual-tranche green bond offering in international markets, marking the Korean steel giant’s first global bond issuance since restructuring as a holding company.
The offering, completed on April 28, consists of a $400 million five-year bond and a $300 million ten-year bond, with final spread rates of 137.5 and 157.5 basis points over U.S. Treasury yields, respectively. The five-year tranche was priced 42.5 basis points tighter than initial guidance, reflecting strong investor appetite.
The issuance attracted approximately $6.6 billion in orders from 291 institutions despite challenging market conditions stemming from recently announced U.S. tariff measures. Asian investors dominated the allocation at 64%, followed by U.S. investors at 21% and European investors at 15%.
POSCO has earmarked the proceeds for its energy materials business, aligning with the company’s broader environmental strategy. The successful bond sale follows the establishment of a new sustainable finance framework last month and extensive investor presentations across global financial centers.
The company’s latest offering continues POSCO’s green finance initiatives, building on its position as the first steelmaker to issue ESG bonds. Industry analysts note the strong demand reflects growing investor confidence in Korea’s sustainable debt market despite global economic uncertainty.
The offering highlights POSCO’s strategic pivot toward green business segments while maintaining its steel production core. Under Chairman Chang In-hwa’s leadership, the company has been balancing structural reforms with targeted investments in future growth areas, particularly in battery materials and energy transition technologies.
