Hana Bank Issues ESG Subordinated Bonds Worth 435 Billion KRW

[Asia Economy Reporter Kiho Sung] Hana Bank announced on the 15th that it has successfully issued KRW 435 billion worth of won-denominated ESG (Environmental, Social, and Governance) subordinated bonds.

This issuance was made in the form of sustainable bonds combining 'green bonds' used for green projects such as renewable energy development and 'social bonds' aimed at supporting financially marginalized groups.

The issued bonds are in the form of amortizing contingent capital securities with a maturity of 10 years, and the issuance interest rate is 2.58%, which is 49 basis points (1bp = 0.01 percentage points) above the 10-year government bond yield.

A Hana Bank official stated, "Despite the challenging bond issuance market due to the possibility of a base interest rate hike within the year, we were able to successfully issue these ESG bonds based on strong interest in ESG bonds. Through this issuance, we will enhance capital adequacy and actively practice ESG management by fulfilling our responsibilities as a social enterprise."