Busan Bank Issues 100 Billion KRW ESG Bond, First Among Regional Banks

Support for Eco-friendly Projects, Local SMEs, and Basic Infrastructure for Vulnerable Groups

[Asia Economy Yeongnam Reporting Headquarters Reporter Kang Woo-kwon] BNK Busan Bank announced on the 1st that it has issued 100 billion KRW worth of won-denominated ESG bonds (sustainability bonds), the first among regional banks.

ESG bonds are bonds issued for the purpose of socially responsible investment, aiming to improve Environment, Social, and Governance factors. The funds raised through bond issuance are invested in projects that create environmental or social value.

To issue these ESG bonds, Busan Bank established an internal ESG bond management system that meets the guidelines of the International Capital Market Association (ICMA) and obtained a verification report from Han Young Accounting Corporation, an accredited ESG certification institution.

The bonds were issued in a public offering format with a 2-year maturity and a scale of 100 billion KRW, underwritten by SK Securities.

Busan Bank plans to use the funds raised through the bond issuance not only for eco-friendly projects to promote the Green New Deal and green finance but also for projects related to local issues such as supporting regional small and medium-sized enterprises and small business owners.

A Busan Bank official stated, “We have successfully completed the issuance of ESG bonds for the first time among regional banks this year,” adding, “In 2021, through additional ESG bond issuances, we will accelerate the ongoing regional economic revitalization projects and actively pursue socially responsible management for coexistence with the region, such as expanding productive and inclusive finance for local SMEs and small business owners.”