SRI Bonds Newly Listed Worth 58.9 Trillion KRW... 129% Increase Year-on-Year

[Asia Economy Reporter Oh Ju-yeon] As interest in Socially Responsible Investment (SRI) grows, the scale of newly listed SRI bonds last year has significantly increased.

According to the Korea Exchange on the 13th, the scale of newly listed SRI bonds last year was 58.9 trillion KRW, a 129% increase compared to the previous year. This accounts for 7.7% of the total newly listed bonds amounting to 769 trillion KRW.

SRI (Socially Responsible Investment) bonds are bonds whose raised funds are used for projects that create positive environmental or social impacts. They refer to green bonds, social bonds, and sustainability bonds, and are also called ESG bonds or social contribution bonds. Since the first listing of SRI bonds in 2018, the cumulative listing amount over three years has reached 85.9 trillion KRW.

Last year, the listing amounts by bond type were 1 trillion KRW for green bonds, 54.2 trillion KRW for social bonds, and 3.7 trillion KRW for sustainability bonds.

Green bonds are issued to raise funds for investment in environmentally friendly projects or social infrastructure, social bonds are issued to raise funds for investment in projects that create social value, and sustainability bonds are issued to raise funds for investment in projects that are both environmentally friendly and create social value.

Among these, social bonds and sustainability bonds increased by 31.8 trillion KRW and 1.9 trillion KRW respectively compared to 2019, while green bonds decreased by 0.5 trillion KRW.

The outstanding balance of listed SRI bonds also showed an increasing trend. As of last year, the outstanding balance of SRI bonds was 82.1 trillion KRW, a 206% increase from the previous year. By type, 3 trillion KRW of green bonds, 73.7 trillion KRW of social bonds, and 5.4 trillion KRW of sustainability bonds were listed.

The Korea Exchange stated, "Although the SRI bond market has grown centered on social bonds, it is expected to grow further due to the increase in green bond issuance driven by government activation policies and the expansion of investment demand from entities such as the National Pension Service."

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