Korea Development Bank Supports ESG Bond Issuance by Five Mid-sized Companies

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] The Korea Development Bank announced on the 28th that it will support the issuance of 100 billion KRW in ESG (Environmental, Social, and Governance) certified corporate bonds by five mid-sized companies to expand the base of ESG bonds.

For Danseok Industrial, Disec, Seojin Industrial, and Motrex, this marks their first issuance of ESG bonds. SGC Energy issued additional ESG bonds just over a month after its issuance in June. The funds raised will be used for green investments such as eco-friendly energy, eco-friendly ship retrofitting, and electric and hydrogen vehicles.

This issuance is the first market case of issuing ESG bonds through securitization, where, considering the use of funds (ESG certification), company size, credit rating, and issuance interest rate, the Korea Development Bank supported by securitizing each company's private placement bonds as underlying assets after credit enhancement.