Naver Issues ESG Bonds Worth $500 Million

[Asia Economy Reporter Kang Nahum] Naver announced on the 23rd that it has issued ESG (Environmental, Social, and Governance) bonds worth 500 million dollars with a maturity of five years. Among global internet and IT companies, Naver is the first to issue debut bonds as ESG bonds targeting global investors.

Earlier, Naver successfully held an investor roadshow for more than 100 global institutional investors from 62 institutions on the 17th and 18th. Additionally, in the demand forecast conducted the day before, orders worth 3.2 billion dollars, more than six times the target amount, poured in, and it succeeded in reducing the spread to 68 basis points. This is the lowest spread ever for a five-year foreign currency bond issued by a Korean private company.

ESG bonds are special-purpose bonds issued for socially responsible investment. They are classified into green bonds used in eco-friendly business sectors, social bonds used to address social issues, and sustainable bonds that combine these two purposes for comprehensive use.

Naver plans to primarily use the funds raised through this sustainable bond to strengthen ESG management, focusing on eco-friendly projects and social contribution projects.

In the eco-friendly sector, cutting-edge green technologies such as energy saving and renewable energy use will be applied to the Sejong 2nd Data Center and Bundang 2nd Office currently under construction. Naver is also promoting eco-friendly logistics consignment services that can reduce carbon emissions in partnership with CJ Logistics, as well as the production of eco-friendly delivery boxes.

In the social contribution sector, efforts will focus on enhancing digital literacy, supporting COVID-19 crisis response, fostering coexistence among SMEs (small and medium-sized enterprises), creators, and startups, as well as promoting gender equality and employment for low-income groups.

Park Sangjin, Naver’s Chief Financial Officer (CFO), said, "The funds raised through the sustainable bonds will be used to create an eco-friendly SME ecosystem, build green infrastructure, and expand partner support, which are key to Naver’s business competitiveness. We expect to transparently and actively communicate Naver’s various ESG management efforts to global investors and enhance our status as a leading eco-friendly internet company in Korea."

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