Woori Bank Issues 400 Billion KRW Subordinated Won-denominated Bonds

ESG Bonds... Fixed Interest Rate of 5.14% Per Year

Woori Bank announced on the 1st that it issued KRW 400 billion worth of won-denominated subordinated bonds (contingent capital securities) in the form of ESG (Environmental, Social, and Governance) bonds for sustainable management on the 31st of last month.

The bonds were issued with a maturity of 10 years and a fixed interest rate of 5.14% per annum. The issuance rate was set by adding a spread of 1.50%p to the 10-year government bond yield, marking the first subordinated bond issuance by a commercial bank this year.

Woori Bank initially planned to issue KRW 270 billion but increased the amount to KRW 400 billion due to strong demand, with funds totaling KRW 610 billion, approximately 2.26 times the planned amount.

Notably, these bonds are sustainable bonds combining 'Green Bonds' used for green finance such as renewable energy development and 'Social Bonds' aimed at supporting socially vulnerable groups. The issuance of these bonds is expected to raise Woori Bank's BIS (Bank for International Settlements) ratio by 0.24 percentage points.

A Woori Bank official stated, “Through the bond issuance, we will do our best to actively practice ESG management that fulfills social responsibility while enhancing capital adequacy.”