GH, First Local Public Enterprise to Issue 70 Billion KRW Green Bonds

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Housing and Urban Corporation (GH) has issued 70 billion KRW of 'Green Bonds' with a maturity of 2 years, becoming the first local public enterprise to do so.

Green bonds are a type of special purpose bond within 'ESG bonds,' which emphasize a company's social and economic governance. The funds raised can only be used for environmental improvement and eco-friendly projects.

The green bonds issued by GH this time received the highest grade (G1) in green finance certification evaluation from the certification specialist agency Korea Ratings.

GH will use the raised funds for construction costs of the housing construction project in Block A94 of Dongtan 2 New Town, which received a preliminary certification of the highest grade in green building.

GH was able to raise funds at an interest rate 0.01%p lower than the market rate amid ongoing domestic and international base rate hikes due to inflationary pressures.

In December last year, GH declared 'ESG Management' and reorganized into an ESG management system pursuing eco-friendly energy reduction, people-centered win-win management, and transparent and fair governance. Issuing ESG bonds was one of GH's ESG management strategic tasks.

Jeon Hyung-su, Acting President (Vice President) of GH, emphasized, "GH will take this green bond issuance as an opportunity to carry out substantial and strengthened ESG management activities."