South Korea's Posco raises $500 mln in three-year green bond - term sheet (updated)

Mirae Asset Securities

17/01/2024 03:21

(Adds deal details from fourth paragraph)
    By Scott Murdoch and Joyce Lee
       Jan 17 (Reuters) - South Korea's steelmaker Posco has
raised $500 million in a three-year U.S. dollar green bond,
according to a term sheet reviewed by Reuters on Wednesday.
    The bond was priced at Treasuries plus 110 basis points
(bps), the term sheet showed. 
    Posco did not immediately respond to a request for comment.
    Final pricing for the bond was set 40 bps tighter than the
initial price guidance given to investors earlier on Tuesday.
    Demand from investors reached $4 billion and 71% of the
bond's buyers came from Asia Pacific, 19% from Europe and the
Middle East and 10% from the U.S., according to a separate
message from the book runners sent on Wednesday.
    There were more than 200 investors' place orders in the deal
and asset and fund managers made up the majority of the buyers,
the book message showed.
    South Korea's corporates have made a strong start to 2024,
with Posco's bond one of a number of debt transactions currently
underway in the country.
    SK Battery America raised $500m in a three-year dollar green
bond on Tuesday, a term sheet showed.
    South Korea's third-largest commercial bank by assets Woori
Bank is carrying out a 3 and 5-year dollar sustainability bonds
on Wednesday, according to a separate term sheet.
    South Korea's biggest securities brokerage by equity capital
Mirae Asset Securities  006800.KS  has hired investment banks to
work on a potential 3 and 5 year dollar bond, according to a
mandate notice sent by bookrunners.
    Spokespeople for SK Battery America, Woori Bank and Mirae
Asset could not be immediately reached for comment. 
        
  
    

 (Reporting by Scott Murdoch in Sydney and Joyce Lee in Seoul;
Editing by Jacqueline Wong and Miral Fahmy)
 ((Scott.Murdoch@thomsonreuters.com;))