South Korea's POSCO raises $700 million in green bonds

South Korean steelmaker POSCO Holdings said on Tuesday it had raised $700 million in a two-tranche green bond that was heavily oversubscribed by investors. The company raised $400 million in a five-year bond and $300 million in a longer-dated 10-year bond, the company said.

POSCO's $700 million fund raising target was reported by Reuters on Monday, citing sources.

The five-year bond was priced at Treasuries plus 137.5 basis points, according to a term sheet seen by Reuters, which was 42.5 basis

  points cheaper than the initial price guidance given to investors on Monday. The 10-year bond was priced at Treasuries plus 157.5 basis points, which was also 42.5 basis points tighter than the initial price guidance.

Investors lodged orders worth more than $3.8 billion for the five-year bond and over $2.8 billion for the 10-year tranche, according to a book runners' message seen by Reuters.

POSCO told investors the funds raised would be used to finance or refinance the company's new or existing green projects.