KB Financial Group, First Domestic Financial Holding Company to Issue ESG Hybrid Capital Securities

Initial Scheduled Amount of 300 Billion KRW Attracts Demand of 854 Billion KRW, About 2.8 Times Higher
Issued Additional 500 Billion KRW at Lowest Interest Rate in Financial Sector
Reflects KB Financial's Top Domestic Credit Rating and Interest in ESG Bonds

[Asia Economy Reporter Park Sun-mi] KB Financial Group announced on the 20th that it has issued KRW 500 billion worth of ESG bonds in the form of hybrid capital securities to expand its role as a leading financial group in Environmental, Social, and Governance (ESG) areas.

This ESG bond is the first 'KRW ESG bond' issued by a domestic financial holding company and is a sustainable bond aimed at providing financial support for eco-friendly and social value-creating projects.

Thanks to KB Financial's top-tier domestic credit rating and the interest from various investors such as securities firms, insurance companies, and mutual aid associations in ESG bonds, the subscription rate reached approximately 2.8 times (KRW 854 billion) the initial planned amount of KRW 300 billion, leading to a final issuance increase to KRW 500 billion.

The 5-year call option amounting to KRW 435 billion was issued at an interest rate of 3.00%, the lowest level in the financial sector, and the 10-year call option of KRW 65 billion was issued at an interest rate of 3.28%. This issuance is expected to further strengthen KB Financial's capital adequacy.

Currently, KB Financial is promoting 'KB Green Way 2030,' centered on the 'ESG Committee,' which includes ▲ advancing climate change strategies for the environment ▲ internalizing responsible management for society ▲ spreading transparent corporate governance. The funds raised through this sustainable bond issuance will be used to accelerate these initiatives.

A KB Financial Group official stated, "The issuance of sustainable bonds is significant as it is 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 ESG management financial group."

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