POSCO Holdings, the South Korean steel giant, announced on Tuesday that it successfully raised $700 million through a two-part green bond offering that saw strong demand from investors.

The company issued $400 million in five-year bonds and $300 million in 10-year bonds. The bond sale was reported by Reuters on Monday, based on sources familiar with the matter.

The five-year bonds were priced at a spread of 137.5 basis points over U.S. Treasuries, which was 42.5 basis points lower than the initial price guidance provided to investors earlier.Meanwhile, the 10-year bonds were priced at 157.5 basis points over Treasuries, also 42.5 basis points tighter than the earlier guidance.

Investor demand was robust, with orders surpassing $3.8 billion for the five-year bonds and over $2.8 billion for the 10-year portion, according to details shared by the book runners.

POSCO indicated that the proceeds from the bond sale would be used to fund or refinance its ongoing and future green projects, reinforcing its commitment to sustainable development.