Sydney: POSCO Holdings, a South Korean steel company, said on Tuesday that it had raised $700 million via a two-tranche green bond that was significantly oversubscribed.

According to the corporation, it raised $300 million in a longer-dated 10-year bond and $400 million in a five-year bond.

According to sources, Reuters reported on Monday that POSCO had set a goal of raising $700 million.

According to a term sheet seen by Reuters, the five-year bond was priced at Treasuries plus 137.5 basis points, 42.5 basis points below the original price advice provided to investors on Monday.

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The price of the 10-year bond was 42.5 basis points narrower than the original price guide, at Treasuries plus 157.5 basis points.

According to a book runners’ communication obtained by Reuters, investors placed orders totaling more than $2.8 billion for the 10-year tranche and more than $3.8 billion for the five-year bond.

POSCO assured investors that the money they obtained would be utilized to finance or refinance any new or ongoing green initiatives the firm had planned.