이 기사는 2022년 04월 08일 08:03 thebell 에 표출된 기사입니다.

Posco Chemical has successfully sold its maiden ESG (environmental, social and governance) bond despite worries over interest rate hikes.

Posco Chemical attracted bids of 800 billion won ($656 million) in its bookbuilding session on Wednesday, which is nearly 5.5 times of its issuance of 150 billion won, according to industry sources. It attracted bids worth 640 billion won for a 100 billion won 3-year bond issue and 160 billion won for a 50 billion won 5–year bond issue.

The 3-year bond was priced at 10 basis points (bps) lower than its average yield and the 5-year bond at 3 bps lower than its average yield. Posco Chemical proposed yields ranging from minus 30 to plus 30 bps of the average yield for its bonds.

Posco Chemical planned to increase the offering to up to 300 billion and is expected to discuss details to proceed with the plan. The bonds will likely be issued at yields lower than the average yield even if it increases the offering.

The latest issuance has proved positive investor sentiment on “good” deals despite depressed corporate bond market, market watchers said. South Korea’s major institutional investors and some foreign banks reportedly participated in the bookbuilding process.

Investors are attracted to high growth potential of secondary battery materials. Posco Chemical’s energy materials division propelled the record performance, with the division’s revenue spiking about 60% in 2021 compared to the previous year.

The latest deal marks the company’s first ESG bond sale, which will entirely be issued in green bonds. (Reporting by Yoon-shin Choi)