IBK Industrial Bank, First in Banking Sector to Issue 1.05 Trillion KRW Bonds with ESG Certification Rating

Achieved Highest Social Bond Rating 'SB1'... Enhanced Transparency and Credibility
Record Largest ESG Bond Issuance by Domestic Banks

[Asia Economy Reporter Park Sun-mi] IBK Industrial Bank of Korea announced on the 18th that it has issued the highest-rated won-denominated small and medium-sized enterprise (SME) financial bonds with ESG (Environmental, Social, and Governance) certification, the first among banks.

The bonds total 1.05 trillion KRW, with 550 billion KRW maturing in one year and 500 billion KRW maturing in three years. This is the largest scale of ESG bonds ever issued by domestic banks. The issuance interest rates are 0.81% and 1.10%, respectively.

In particular, these bonds are the first in the banking sector to introduce an ESG certification rating system and received the highest grade of 'SB1' among social bonds from Korea Credit Rating, enhancing the transparency of the bonds and investor confidence. The ESG certification rating is evaluated and disclosed in five grades by an external professional institution that continuously monitors management standards and post-management of the issued bonds.

The funds raised this time will be used to provide financial support to small business owners struggling with funding due to COVID-19 and to support SMEs.

An IBK official said, "The acquisition of the bank's first ESG bond certification rating reflects the will of President Yoon Jong-won, who has always emphasized 'right management' and the role as a corporate citizen," adding, "We will continue to strive to expand policy financial support through continuous issuance of ESG bonds."

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