K-water, First Public Enterprise to Raise 50 Billion KRW through 'ESG Bonds' Investment

[Sejong=Asia Economy Reporter Son Seon-hee] Korea Water Resources Corporation announced on the 17th that it has attracted an investment of 50 billion KRW through the issuance of ESG (Environmental, Social, and Governance) bonds, becoming the first major public enterprise to do so.

According to the Water Resources Corporation on the same day, it secured this investment amount from the Baden-W?rttemberg State Bank (LBBW) of Germany on the 12th. The ESG bonds issued this time are limited to being used only for investments related to environmental, social, and governance matters, totaling 50 billion KRW. An interest rate 0.1 percentage points lower than the market rate is applied. The maturity date is March 12, 2024. DB Financial Investment acted as the lead manager.

The Water Resources Corporation plans to use the funds raised this time for upgrading and stratification of aging water supply pipes to improve the water environment. This is the first time among major public enterprises that green bonds have been issued successfully to attract investment. The Water Resources Corporation plans to additionally issue green bonds worth a total of 300 billion KRW this year.

Park Jae-hyun, President of the Water Resources Corporation, stated, "Following last year's declaration of climate crisis management and the introduction of ESG management this year, the issuance of these green bonds will serve as an opportunity to be recognized by investors for the sustainable development potential through ESG management in the era of the climate crisis," adding, "We will continue to actively invest in environmental improvement projects for green transition."

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