First in the Industry: ESG-Linked ELS Launched by KB Securities on July 7

S&P 500 ESG and Euro Stoxx 50 ESG Index Tracking

[Asia Economy Reporter Minwoo Lee] KB Securities is launching the industry's first equity-linked securities (ELS) product that tracks ESG (Environmental, Social, and Governance) indices from the US and Europe.

KB Securities announced on the 30th that it will publicly offer this 'ESG Index-linked ELS' starting from the 31st and plans to issue it for the first time in the industry on the 7th of next month.

The product, named 'KB able ELS 1703 (3-Index Step-Down Type),' is based on the S&P 500 ESG Index, Euro Stoxx 50 ESG Index, and KOSPI 200 Index. It has a 3-year maturity with early redemption opportunities every 6 months and offers a maximum annual pre-tax return of 5.5%.

Among the underlying assets, the 'S&P 500 ESG Index' and 'Euro Stoxx 50 ESG Index' are based on the S&P 500 Index and Euro Stoxx 50 Index, which represent the US and Eurozone (19 countries using the Euro), respectively, but exclude components that are negative in terms of ESG.

Meanwhile, KB Securities will publicly offer a total of four products worth 40 billion KRW, including three principal-at-risk ELS products along with the 'ESG Index-linked ELS.' These products may incur principal losses, and detailed information can be obtained at any KB Securities branch nationwide or through the customer center.

Lee Byung-hee, Head of Capital Markets Sales at KB Securities, said, "The ESG Index-linked ELS is a product designed to meet the demand of investors interested in ESG investment, which has recently gained attention in the financial market among ELS investors, and we expect it to attract investor interest." He added, "We plan to continuously launch new products using underlying assets that meet customer demand."

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