Socially Responsible Investment Bonds at a Glance... Exchange Opens Dedicated Segment

[Asia Economy Reporter Oh Ju-yeon] The 'Socially Responsible Investment (SRI) bonds,' whose information accessibility was limited due to unstandardized disclosure infrastructure, can finally have all information accessed in one place through the Korea Exchange. By aggregating standardized information on SRI bonds, the exchange is expected to reduce investors' information search costs and time, thereby aiding investment activation.

According to the financial investment industry on the 15th, the Korea Exchange opened a 'dedicated segment for Socially Responsible Investment Bonds' last month, allowing various statistics and regulations related to SRI bonds to be viewed at a glance. SRI bonds refer to bonds whose issuance funds are used for projects that create environmental or social value. Representative examples include Green Bonds, issued to raise funds for investments in renewable energy, and Social Bonds, which invest in projects that create social value, such as providing low-interest student loans.

With growing interest in environmental, social, and governance (ESG) aspects of socially responsible investment, the issuance of SRI bonds is on the rise. Globally, the scale of SRI bonds nearly doubled from $85 billion in 2016 to $162 billion in 2018. In Korea, the issuance expanded from 2018 after the Export-Import Bank issued green bonds overseas in 2013. As of the 13th, about 390 SRI bond issues worth 62 trillion KRW are listed and traded on the Korea Exchange bond market.

SRI bonds are financially similar to general bonds in terms of issuance and principal and interest repayment, but they must have a bond management system that meets SRI bond requirements and be evaluated by an external assessment agency for compliance.

However, until now, SRI bond information was disclosed separately by issuing institutions, and there was no credible institution providing item information and statistics, making it difficult for investors to grasp related information. To improve this, the Korea Exchange launched a comprehensive SRI bond information portal.

The bond introduction menu provides information such as the definition, principles, and issuance guidelines of SRI bonds, while the bond status menu allows detailed item information to be viewed separately by green bonds, social bonds, and sustainable bonds. Additionally, information on management systems and reports from external evaluation agencies, which are key features of SRI bonds, can also be found.

With the Korea Exchange operating a dedicated segment for Socially Responsible Investment Bonds, issuers can officially be recognized as qualified SRI bonds through segment registration. This is expected to secure bond credibility and enable stable fundraising in the market. Investors are also expected to save on information search costs and time.

An exchange official said, "Through public listing and disclosure infrastructure, the credibility and transparency of SRI bonds will be enhanced, and investors' information accessibility will be strengthened," adding, "It is expected that investors will be able to invest more actively in SRI bonds."

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