KEPCO Issues 200 Billion KRW ESG Bonds for 2 Consecutive Years... First Energy Company to Do So

Utilization of Domestic and International New and Renewable Energy and Energy Efficiency Projects, SME Support, and Job Creation

A view of the Korea Electric Power Corporation headquarters in Naju, Jeollanam-do. (Photo by Korea Electric Power Corporation)

[Asia Economy Reporter Moon Chaeseok] Korea Electric Power Corporation (KEPCO) has become the first energy company in South Korea to successfully issue 200 billion KRW worth of Korean won-denominated Environmental, Social, and Governance (ESG) bonds for two consecutive years.

On the 4th, KEPCO announced that it issued Korean won ESG bonds consisting of 30 billion KRW for 2-year bonds, 100 billion KRW for 3-year bonds, and 70 billion KRW for 5-year bonds.

The issuance yield was on average 2.65 basis points (1bp = 0.01 percentage points) lower than the yield on existing power bonds, marking the lowest level ever for ESG bonds issued in Korean won by energy companies domestically.

ESG refers to investors who consider environmental, social responsibility, and governance factors as key criteria in their investment decisions.

Globally, interest in eco-friendly initiatives and corporate social responsibility has been increasing recently.

KEPCO plans to use the funds raised through the ESG bond issuance for domestic and international new and renewable energy projects, expansion of renewable energy-related facilities, energy efficiency projects, job creation, and support for small and medium-sized enterprises.

Following the issuance of a 500 million USD overseas green bond in the first half of this year, KEPCO has succeeded in issuing Korean won ESG bonds for two consecutive years, becoming the first domestic energy company to do so.

This diversification of funding sources through low-interest financing is expected to significantly reduce financial costs.

A KEPCO official stated, "We have issued Korean won ESG bonds for two consecutive years as the first domestic energy company," adding, "We will actively fulfill the demands to confirm investors' continuous trust and to take the lead in energy transition investments for eco-friendliness and enhancing social value."

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