South Korean steelmaker POSCO Holdings has raised USD 700 mn through a dual-tranche green bond, Reuters reported on Tuesday. Proceeds will be used to finance or refinance new or existing green projects. The company secured USD 400 mn from a five-year bond priced at 137.5 bps above treasuries and USD 300 mn from a 10-year bond priced at 157.5 bps above treasuries. The demand on the issuance was high, with orders exceeding USD 3.8 bn for the short tranche and USD 2.8 bn for the longer-dated one, Reuters said, citing a bookrunner’s note it has seen.

POSCO has regional ties: The company was awarded a USD 6.7 bn contract two years ago to set up what it said would be the world’s largest green hydrogen plant in Oman’s Duqm. This was followed by a partnership with ADNOC last year to build a low-carbon blue hydrogen production plant in South Korea.

Indonesia hikes taxes on key minerals: Indonesia — the world’s top nickel producer — has raised levies on the mining of nickel, coal, copper, and other minerals, the Financial Times reported on Tuesday. Nickel will now be taxed at a sliding rate of 14-19%, up from 10%, depending on global market prices. The fiscally strained government seeks to squeeze out more revenues to fund big-ticket plans with a focus on its commodities sector.

The effect: Higher taxes could spook investors and squeeze margins, particularly for miners without smelting capabilities. These firms are expected to pass on the extra costs to smelters, potentially inflating prices across the supply chain, FT adds, citing the Indonesian Nickel Miners Association.

Tags: