KDB Industrial Bank Issues Green Bonds Worth 200 Billion Won

Expected to Meet Demand for Socially Responsible Investment and Contribute to the Activation of Domestic Eco-Friendly Projects

[Asia Economy Reporter Kangwook Cho] KDB Industrial Bank announced on the 29th that it has issued Green Bonds worth 200 billion KRW to major domestic institutional investors. The maturity is 3 years, and the coupon rate is 1.00% (fixed-rate coupon bond).

Green Bonds are a type of ESG bond among the three categories (green, social, sustainable bonds) that restrict the use of raised funds exclusively to support projects in the green sector.

Since issuing the first domestic KRW Green Bond (300 billion KRW) and Social Bond (300 billion KRW) in 2018, KDB Industrial Bank has been continuously issuing ESG bonds annually (800 billion KRW in 2019, 1.2 trillion KRW in 2020), playing a key role as a market maker.

KDB Industrial Bank plans to use the proceeds from this Green Bond issuance to support domestic low-carbon green projects such as renewable energy (solar power generation) and eco-friendly transportation (eco-friendly ship equipment upgrades). Detailed usage of funds and environmental improvement contributions will be posted on the bank’s website through investor notices in the future.

The eligible projects for Green Bond support can be confirmed through the "Green, Social, Sustainable Bond Standard Management System" on the Industrial Bank’s website.

A KDB Industrial Bank official stated, "Going forward, as a leading policy finance institution, the Industrial Bank will actively implement financial support aligned with government policies, including the Green New Deal and other government initiatives to build a sustainable social infrastructure."