Gwangju Bank Issues 100 Billion KRW Bonds with Top ESG Rating

Use of Procurement Funds for 'Green Finance Activation' to Support Eco-friendly Projects and Small Businesses

[Asia Economy Honam Reporting Headquarters, Reporter Yoon Jamin] Gwangju Bank (President Song Jongwook) announced on the 12th that it has issued 100 billion KRW worth of won-denominated ESG bonds that received the highest ESG certification rating.

The funds raised will be used for eco-friendly projects to promote green finance and to support local small and medium-sized enterprises and small business owners struggling due to COVID-19.

ESG bonds are bonds issued for socially responsible investments aimed at improving Environment, Social, and Governance factors, and are categorized into 'green bonds,' 'social bonds,' and 'sustainability bonds.'

The bonds issued this time are 'sustainability bonds,' which have a mixed nature of green bonds focused on eco-friendly projects and social bonds aimed at creating social value.

In particular, they received the highest rating of 'ST1' among sustainability bonds from Korea Ratings, enhancing the transparency of the bonds and investor confidence.

To issue these ESG bonds, Gwangju 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 Korea Ratings, an accredited ESG certification institution.

Song Jongwook, President of Gwangju Bank, said, "We will strengthen inclusive finance without boundaries with the local community through future coal phase-out policies and expanded investments related to eco-friendly finance. We will enhance corporate social responsibility in ESG management and grow into a sustainable 100-year bank through mutual development with the region."

Meanwhile, based on its ESG management philosophy, Gwangju Bank established an ESG team in April to focus on inclusive and productive finance and officially began ESG management. It also established the ESG Promotion Committee, a specialized consultative body, to efficiently and systematically implement ESG practices.

Following President Song Jongwook’s management philosophy of "pursuing value beyond profit" through "coexistence with the region and companionship with local residents," Gwangju Bank actively practices ESG management strategies. It shows interest in various fields such as the local economy, society, and culture, participates in problem-solving, and leads the spread of green finance and inclusive finance.

Volunteer activities such as the Gwangju Stream relay volunteer work, the 'One Institution, One Clean Zone' campaign in Dong-gu, Gwangju Metropolitan City, the campaign to reduce disposable cup usage, the annual selection and awarding of social contribution awards to motivate local love and volunteerism, and the hosting of the 'Green Environment Awards' to discover environmental guardians responsible for the local environment are various environmental protection activities by Gwangju Bank to spread the green wave in the local community.

Leading the practice of green finance, Gwangju Bank signed a 'Coal Phase-out and Green New Deal Agreement' with Gwangju Metropolitan City, actively cooperating with city policies by not participating in project financing or bond underwriting for coal-fired power plant construction, and evaluating corporate loans with an ESG focus.

Additionally, the bank sells K-Green credit and check cards, financial products that promote environmental love by providing carbon points (Eco Money) when practicing energy saving and purchasing green products.

Financial support for self-employed and small business owners affected by COVID-19, financial adjustment counseling and management consulting at the Gwangju Bank Inclusive Finance Center, and the launch of the 'Prime Plus Loan' reflecting the financial needs of medium- and low-credit customers who are not included in the first-tier financial sector are timely financial prescriptions for local residents and customers in need, practicing inclusive finance.

A Gwangju Bank official said, "We will accelerate the in-depth implementation of the current ESG management strategy, increase investments in eco-friendly sectors, and develop ESG financial products to leap forward as an ESG leading bank."