KB Kookmin Card Issues 100 Billion KRW 'ESG Bond' to Support Small and Medium Merchants
For Small Franchisees
Purpose of Early Payment of Credit Sales Proceeds
[Asia Economy Reporter Ki Ha-young] KB Kookmin Card announced on the 9th that it has issued 'ESG bonds' worth 100 billion KRW to support small and medium-sized merchants struggling due to the novel coronavirus disease (COVID-19).
The bonds issued this time are special purpose bonds used for eco-friendly or social value creation, and the funds raised will be used for early payment of credit sales proceeds to small and medium-sized merchants facing liquidity difficulties due to COVID-19.
Underwritten by SK Securities and issued through a public offering, the bonds total 100 billion KRW, consisting of 60 billion KRW with a maturity of 3 years and 1 month and 40 billion KRW with a maturity of 4 years. The issuance interest rates were set at 1.492% per annum for the 3 years and 1 month bond and 1.615% per annum for the 4-year bond, based on excellent credit ratings and asset soundness, which are lower than the average market rates.
Prior to issuing these ESG bonds, KB Kookmin Card established a sustainable finance management system and received external certification on compliance with the International Capital Market Association’s sustainable bond guidelines, including the Green Bond Principles (GBP), Social Bond Principles (SBP), and Sustainability Bond Guidelines (SBG).
Furthermore, to more effectively promote projects that have positive environmental and social impacts, the company plans to continue expanding its investor base by pursuing social responsibility investments and fundraising through 'sustainability bonds' in the future.
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A KB Kookmin Card official stated, "Through this ESG bond issuance, ESG management, including leading sustainable management based on ESG, which is one of KB Financial Group’s key management strategies, and practicing corporate social responsibility, is expected to accelerate further. We will continue to spare no effort in promoting and supporting projects that can enhance social value in various forms, including eco-friendliness, social contribution, and shared growth."
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