KB Kookmin Bank Issues $500 Million Sustainable Bonds

"Practicing ESG Responsible Management through Sustainable Bond Issuance"

[Asia Economy Reporter Park Sun-mi] KB Kookmin Bank announced on the 29th that it has successfully issued $500 million worth of 5-year senior sustainable bonds.

The issuance rate was 1.406%, which is 55 basis points above the US 5-year Treasury yield, marking the lowest rate ever for KB Kookmin Bank's global bonds. These bonds will be listed on the Singapore Exchange. More than 100 institutions participated, securing orders exceeding $2.1 billion, which is 4.2 times the issuance amount of $500 million. The spread was also reduced by 30 basis points from the initially offered rate.

This issuance is in the form of sustainable bonds, and the raised funds will be used to support eco-friendly and social projects under KB Kookmin Bank's sustainable finance management system. Since issuing the first foreign currency sustainable bond among domestic commercial banks in 2018, KB Kookmin Bank has continuously supplied ESG (Environmental, Social, and Governance) bonds to the market, solidifying its image as a major ESG bond issuer in the global market.

A KB Kookmin Bank official stated, “Despite increased market volatility due to global concerns over the resurgence of COVID-19, KB Kookmin Bank's excellent business performance and solid asset soundness attracted strong demand from global investors.” He added, “Including this issuance, we have issued a total of seven foreign currency sustainable bonds, reinforcing our position as a leading financial institution in ESG management.”

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