[Courtesy of Posco]
Posco said Tuesday it has become the world's first steel company to issue sustainability bonds, which are a type of environmental, social and governance (ESG) bonds. Sustainability bonds are floated to exclusively finance a combination of green and social projects.
The company said it has combined green bonds for eco-friendly businesses and social bonds for job creation. The interest rate was set at 2.874 percent and the bonds will be listed on the Singapore Stock Exchange.
"The issuance of ESG bonds will allow us to further strengthen our investment in energy and the environment," Posco Chairman Choi Jeong-woo said. The steel company has invested heavily in lithium-ion battery materials.
ESG-related bonds have been issued mostly by state organizations or institutions to finance environmental or social projects that help boost transparency and sustainability in society, but they are now favored by corporations.
In April, LG Chem, a leading battery producer in South Korea, issued bonds worth $1.56 billion that will be used for an investment to meet growing orders for electric vehicle batteries. It was the biggest green bond to be issued by a South Korean company.
reporter
Lim Chang-won
cwlim34@ajunews.com
