IBK Industrial Bank, Issues 400 Billion KRW Sustainable New KRW Capital Securities

[Asia Economy Reporter Haeyoung Kwon] IBK Industrial Bank of Korea announced on the 18th that it has issued KRW 400 billion worth of contingent won-denominated hybrid capital securities in the form of sustainable bonds for the first time in Korea.

The hybrid capital securities issued this time consist of perpetual bonds worth KRW 90 billion with early redemption rights within 5 years and perpetual bonds worth KRW 310 billion with early redemption rights within 10 years. The issuance interest rates are 2.43% per annum and 2.87% per annum, respectively, the lowest ever among domestic banks.

Following the issuance of KRW 950 billion worth of sustainable bonds twice last year, IBK stated that this bond issuance has positioned the bank as a leader in sustainable finance. Sustainable bonds are special-purpose bonds used to raise funds for supporting socially vulnerable groups, job creation, renewable energy development, and environmental improvement projects.

IBK plans to use the raised funds to provide financial support to small business owners and companies affected by the novel coronavirus disease (COVID-19).

An IBK official said, "We expanded the proportion of perpetual bonds with a 10-year call option compared to previous years to further strengthen capital stability," adding, "We will continue to strive to expand policy finance support through proactive capital expansion."

This content was produced with the assistance of AI translation services.