KAMCO Issues 200 Billion KRW Social Bonds... "30 Trillion KRW ESG Bonds to be Issued by 2023"

5-Year Maturity Issued at 1.884% Interest Rate
Indicates Additional Issuance of 1.1 Trillion Won in Second Half of This Year

Kamco-type ESG Guidelines. Photo by Korea Asset Management Corporation

[Asia Economy Reporter Song Seung-seop] Korea Asset Management Corporation (KAMCO) announced on the 17th that it has completed the issuance of social bonds worth 200 billion KRW.

These bonds are the first ESG (Environmental, Social, and Governance) bonds issued by KAMCO, which directly established a management system in accordance with the International Capital Market Association (ICMA) guidelines and received verification from an external professional institution. The maturity is 5 years with an issuance interest rate of 1.884%.

KAMCO plans to use the funds raised from the bond issuance for projects aimed at revitalizing the economy, such as supporting the recovery of vulnerable groups through the purchase of non-performing loans and expanding opportunities for corporate re-leaps by supporting liquidity for small and medium-sized enterprises.

KAMCO intends to additionally issue social bonds worth 1.1 trillion KRW in the second half of this year to prepare for the increasing demand for socially responsible investment funds for industries affected by COVID-19.

Moon Sung-yoo, President of KAMCO, emphasized, “We plan to issue a total of 3 trillion KRW worth of ESG bonds by 2023 to support financial aid for industries affected by COVID-19, and to invest in zero-energy and smart office building construction. We will strive to continuously discover and support sustainable socially responsible investment projects and consistently practice social value.”