Hanwha Co., Ltd. Accelerates ESG Management with Green Bond Issuance

[Asia Economy Reporter Yoonju Hwang] Hanwha Corporation is accelerating its ESG (Environmental, Social, and Governance) management by issuing green bonds, one of the ESG bonds, for the first time.

Green bonds are special-purpose bonds for raising funds related to eco-friendly projects such as renewable energy and require certification from authorized institutions to be issued. Hanwha Corporation underwent certification procedures with both Korea Ratings and NICE Investors Service to ensure transparency and enhance investor trust, and both agencies awarded the highest grade, Green 1.

The amount issued for this green bond is up to 150 billion KRW. The raised funds will be used to repay borrowings used to participate in the paid-in capital increase of Hanwha Solutions. In February, Hanwha Corporation decided to participate in the paid-in capital increase to pursue sustainable growth and enhance shareholder value through investments in the Green New Deal sector.

Hanwha Solutions secured approximately 1.35 trillion KRW through a paid-in capital increase to expand its solar power and green hydrogen businesses, and Hanwha Corporation, as the largest shareholder, participated in the capital increase with about 420 billion KRW, supporting the eco-friendly future businesses of its major subsidiaries.

As the eldest member of the group, Hanwha Corporation is focusing on ESG management activities. In March, it newly established an 'ESG Committee' within the board of directors to review policies on eco-friendliness, social responsibility, and shareholder returns. Through this, it has strengthened sustainable management activities from an ESG perspective and laid the foundation to respond to new ESG investment trends.

Hanwha is also strengthening its own ESG-related businesses. The global division plans to more than double the scale of carbon credit sales by applying greenhouse gas emission reduction technologies, while the machinery division expects increased sales through its solar power and secondary battery equipment businesses.

Meanwhile, this green bond consists of 3-year and 5-year maturities, with a credit rating of 'A+/Stable.' It is scheduled to be issued on May 7 after submitting the securities registration statement to the Financial Supervisory Service on the 26th and conducting a demand forecast on the 29th. The lead underwriter is KB Securities.

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