Jugeum Gong Issues ESG Bonds Worth 40 Trillion Won to Support Affordable Housing Stability for Ordinary Citizens
Structural Improvement of Household Debt... Will Continue Low-Interest Funding Procurement
[Asia Economy Reporter Kwangho Lee] Korea Housing Finance Corporation announced on the 25th that it plans to issue approximately 40 trillion KRW worth of ESG (Environmental, Social, and Governance) bonds domestically and internationally this year.
The Corporation plans to issue about 10 trillion KRW of ESG bonds quarterly this year to structurally improve household debt and stabilize housing for low-income households through inclusive finance.
In particular, it intends to actively expand the issuance of long-term bonds to supply policy mortgages with maturities of 40 years or more.
Since March 2019 until March this year, the Corporation has issued a total of 79.6 trillion KRW (outstanding balance of 71.4 trillion KRW) in ESG bonds, providing approximately 610,000 households with low-interest, long-term fixed-rate mortgage loans.
This is the largest issuance volume domestically, and last year, it supplied 46.5 trillion KRW, about 83.8% of the total domestic ESG bond market volume (55.6 trillion KRW).
Additionally, the Corporation contributed to building infrastructure to revitalize the ESG bond market. It participated in creating the Korea Exchange’s Socially Responsible Investment segment operation guidelines and actively proposed incentives such as exemption of listing fees for issuers, which were successfully implemented.
As a result, companies that had hesitated to list due to additional costs such as ESG bond certification are expected to participate actively. This is also anticipated to have a positive impact on the revitalization of the ESG bond market.
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A representative from the Corporation stated, "The bond market this year is likely to continue experiencing volatility due to the aftermath of COVID-19, similar to last year. We will continue to secure low-cost funding by employing issuance strategies suited to market conditions, such as diversifying funding sources to prepare for market uncertainties."
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