Busan Transportation Corporation Issues 'Korean Green Bonds' for Second Consecutive Year

Train Replacement and Facility Improvement ... Foundation for Sustainable Growth

Participation in Interest Subsidy Program Saves 200 Million KRW in Financial Costs

Busan Transportation Corporation (President Lee Byungjin) has successfully issued 50 billion KRW worth of Korean Green Bonds.

The Korean Green Bond was developed by the Ministry of Environment to promote funding for eco-friendly green economic activities.

This bond can only be issued if it contributes to at least one of the six major environmental objectives, such as greenhouse gas reduction.

In addition, a strict process is required, including a preliminary review for compliance with the Korean Green Taxonomy by an institution designated by the Ministry of Environment, as well as mandatory post-issuance reporting.

The green bond issued by the corporation has a maturity of three years and a total value of 50 billion KRW. It has been certified for compliance with the Ministry of Environment and Financial Services Commission’s Korean Green Bond Guidelines by NICE Investors Service.

As a result, including the 70 billion KRW Korean Green Bond issued last year?the first by an urban railway operator?the corporation has now issued a total of 153.9 billion KRW in green bonds. All funds raised will be used for replacing old subway cars and improving aging facilities.

The corporation has also been selected for the interest subsidy program conducted by the Ministry of Environment to encourage green bond issuance, and is expected to reduce its financial costs by receiving 200 million KRW in interest support.

Lee Byungjin, President of Busan Transportation Corporation, said, “In addition to the continuous issuance of green bonds, we will lead green management practices to achieve carbon neutrality and respond to climate change as a representative low-carbon, eco-friendly transportation provider, contributing to the expansion of sustainable economic activities.”