Mirae Asset Daewoo Leads as Sole Bookrunner for Korea Electric Power Corporation Won-Denominated ESG Bond Issuance
[Asia Economy Reporter Song Hwajeong] Mirae Asset Daewoo announced on the 4th that it successfully completed the issuance as the lead underwriter of Korea Electric Power Corporation's (KEPCO) Korean Won sustainable (ESG) bonds.
This issuance marks the first time a domestic energy company has issued sustainable bonds for two consecutive years, with a total size of 200 billion KRW. The maturity breakdown was 30 billion KRW for 2-year bonds, 100 billion KRW for 3-year bonds, and 70 billion KRW for 5-year bonds.
The coupon rates were 1.019% for the 2-year bonds, 1.137% for the 3-year bonds, and 1.432% for the 5-year bonds, recording the lowest ever level among sustainable bonds issued in Korean Won by domestic energy companies.
Sustainable bonds are special-purpose bonds issued to raise funds for social support projects such as job creation and SME development, or for eco-friendly projects. Through bond issuance, companies contribute to social responsibility and align with the government’s eco-friendly and socially responsible policy directions. Recently, not only public enterprises and banks but also private companies have actively utilized these bonds as a means to raise funds to enhance their brand value.
Jeon Guihak, Head of Global Bond Solutions at Mirae Asset Daewoo, said, “Despite ongoing financial market uncertainties due to concerns over the US presidential election and government bond supply pressures, the issuance was successfully completed amid strong interest from overseas central banks and major domestic institutional investors.”
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Mirae Asset Daewoo received the highest grade of A among securities firms in the ‘2020 ESG Evaluation and Rating Announcement for Growth Companies’ released by the Korea Corporate Governance Service on the 14th, and has been leading ESG-related business, including being the first global securities firm to issue sustainable bonds last year.
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