KDB issues $338 mn worth 2-yr sustainability bond in won denomination

2019.05.13 15:01:56

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State lender Korea Development Bank (KDB) has raised 400 billion won ($337.7 million) in two-year sustainability bond to commit to environmental and social projects.

The debt issued at a coupon of 1.79 percent must finance environmental and social projects in accordance with global guidelines, the bank said Monday. The debt offering was co-led by KTB Investment & Securities, Hana Financial Investment, Kyobo Securities, and KB Securities. KDB’s one-year existing bond yields at 1.817 percent, and benchmark three-year government bond at 1.716 percent.

So far, KDB has raised total 1 trillion won from sustainability bonds. The state lender issued 300 billion won in the country’s first Korean won-denominated green bond designed for environmental benefits and another 300 billion won in social impact bond last year.

The bank said it has set up an internal management body that meets the International Capital Market Association’s guideline on sustainability bonds and had it reviewed by external auditor Samjong KPMG prior to issuing the debt.

KDB hopes its latest offering of sustainability bond can excite local investment in environmental, social and governance (ESG)-focused bonds

The bank, which received Green Climate Fund’s accreditation in 2016, has actively adopted global standards on to back ESG projects. The Green Climate Fund is a global fund created to respond to the challenges of climate change.

By Lee Seung-yoon and Cho Jeehyun

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