POSCO Future M to issue $226 mn Korean green bonds

South Korea's battery component maker POSCO Future M Co. (formerly POSCO Chemical) announced on Friday that it will issue 300 billion won ($226 million) in Korean green bonds to fund investments in anode materials.

The proceeds raised through these green bonds are earmarked for projects related to greenhouse gas reduction, climate change adaptation, sustainable water conservation, transition to a circular economy, pollution prevention and management, and biodiversity conservation.

In an effort to promote the issuance of Korean green bonds, the Ministry of Environment provides up to 300 million won in annual interest cost support for companies.

POSCO Future M plans to allocate the entire amount raised from the bond issuance to finance the facilities at its Pohang anode material plant. Anode materials have been acknowledged as an innovative product in the greenhouse gas reduction sector.

Demand forecasting or book building on Wednesday showed that funds totaling 1.6 trillion won were attracted.

Write to Jae-Fu Kim at hu@hankyung.com