South Korea’s commercial lender KB Kookmin Bank raised 400 billion won ($323.9 million) in issue of ESG bonds to support companies hit hard by the coronavirus pandemic.

The company announced Sunday that it issued the socially-focused debts with one-year maturity at a coupon rate of 1.15 percent last Friday. The yield is 7 basis points lower than the average borrowing rate of AAA-rated bank debts at 1.22 percent as of last Thursday thanks to the investors’ strong demand for ESG bonds, an official from the lender said.

ESG bonds are debts raised to address environmental, social and governance issues.

The bank has so far financed 1.5 trillion won since February to aid companies affected by the COVID-19 crisis.

By Chung Joo-won and Choi Mira

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