SK Securities to Lead as Sole Bookrunner for 500 Billion KRW KB Financial Group ESG Bonds

First Domestic Financial Holding Company to Underwrite Amortizing Contingent Capital Securities ESG Bond Issuance

[Asia Economy Reporter Eunmo Koo] SK Securities announced on the 20th that it participated as a joint lead manager with Kiwoom Securities in the issuance of KB Financial Group's first-ever 500 billion KRW subordinated contingent convertible capital securities (CoCo Bond) ESG bonds among financial holding companies.

The bonds were issued in a total amount of 500 billion KRW, consisting of a 5-year call of 435 billion KRW and a 10-year call of 65 billion KRW, and will be used to support social value creation projects such as Sunshine Loans and to invest in green business project finance (PF) such as wind power and fuel cell power generation.

The initially planned issuance amount was 300 billion KRW, but due to investment demand exceeding 850 billion KRW in the book-building process, the total amount was increased to 500 billion KRW. The interest rates were decided at 3.0% for the 5-year bond and 3.28% for the 10-year bond, which are lower than the upper limits of 3.3% (5-year) and 3.5% (10-year) proposed by the issuer and the lead managers.

In May and June, SK Securities also led a total of 200 billion KRW in ESG bonds issued by Shinhan and KB Kookmin Card to support financially vulnerable groups and small merchants affected by COVID-19.

An SK Securities official said, "This bond issuance is the first case of a financial holding company issuing subordinated contingent convertible capital securities as ESG bonds, and it demonstrates SK Securities' recognized capabilities in the ESG bond market."

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