Hyundai Heavy to Issue 150 Billion KRW Green Bonds Next Month

Kwon Oh-gap, Chairman of Hyundai Heavy Industries Group

[Asia Economy Reporter Choi Dae-yeol] Hyundai Heavy Industries, a shipbuilding affiliate of Hyundai Heavy Industries Group, announced that it will issue green bonds worth 150 billion KRW on the 5th of next month. Earlier, on the 19th, it received the highest 'Green1' rating among the grades for green bond issuance from NICE Credit Rating.

Green bonds are a type of ESG (Environmental, Social, and Governance) bonds aimed at investing in eco-friendly projects. The Green1 rating is a comprehensive evaluation of the suitability of the projects funded by the issuance, the appropriateness of project selection, proper fund management, and thorough external disclosure. The company was recognized for its contribution to environmental improvement by producing eco-friendly ships that lead in reducing harmful substances.

The company stated that the funds raised will be used for building eco-friendly ships and technology development. Ga Sam-hyun, President of Korea Shipbuilding & Offshore Engineering, who oversees the shipbuilding and offshore sector within the group, was appointed as the Chief Sustainability Officer (CSO), and a new ESG Working Committee was established to ensure all affiliates practice ESG management. Procedures will also be put in place to report ESG-related performance and issues to each affiliate's board of directors.

Earlier, Hyundai Oilbank, a refining affiliate, became the first in Korea to receive eco-friendly certification from two organizations and issued green bonds worth 400 billion KRW in January. Hyundai Heavy Industries signed a green loan worth 480 billion KRW with the Korea Development Bank in May last year and is incorporating eco-friendly elements into the global research and development center being built in Pangyo.

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