KB Financial to Issue Won-Denominated ESG Hybrid Capital Securities... 'First Among Financial Holding Companies'

Leading Eco-Friendly and Social Finance Practices Through Funds Raised by Sustainable Bond Issuance

The scene of the KB Financial Group ESG Committee meeting held on the 25th of last month

[Asia Economy Reporter Park Sun-mi]KB Financial Group announced on the 8th that it will issue ESG bonds in the form of new hybrid capital securities worth 270 billion KRW to expand its role as a leading financial group in ESG (Environmental, Social, Governance).

This ESG bond is the first 'KRW ESG bond' to be issued by a domestic financial holding company. It is planned to be issued as a Sustainability Bond aimed at providing financial support for eco-friendly and social value-creating projects.

The upcoming schedule includes finalizing the amount and interest rate within a maximum of 500 billion KRW based on the demand forecast results on the 13th, and issuing the bonds on the 20th. Since it will be issued as new hybrid capital securities, the group's capital adequacy is also expected to improve slightly.

To issue sustainability bonds, certification of eligibility regarding the bond management system is required. KB Financial Group obtained certification for its ESG bond management system and sustainability bond issuance from 'Deloitte,' an ESG certification institution, on the 16th of last month.

A KB Financial Group official said, "The issuance of sustainability bonds is significant in that it will be used for corporate environmental and social responsibility practices and proactive eco-friendly finance," adding, "Going forward, KB Financial will continue to take the lead in practicing substantial ESG management befitting its status as a leading financial group in ESG management."

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