Mirae Asset Securities Achieves First Global Green Bond Issuance Among Securities Firms

The First Securities Firm to Issue for 4 Consecutive Years and Achieve the Lowest Interest Rate

[Asia Economy Reporter Song Hwajeong] Mirae Asset Securities announced on the 30th that it has issued a $300 million global green bond, the first among securities firms.

A green bond is a bond whose proceeds are exclusively used for environmentally friendly energy projects and infrastructure investments such as climate change and renewable energy. The green bond issued by Mirae Asset Securities this time was issued with a 3-year maturity structure totaling $300 million, and the interest rate was fixed at 1.42% by adding a spread of 95bp to the 3-year US Treasury bond yield. Based on effective book size, it secured funds up to 5 times (about $1.5 billion), issuing at 30bp lower than the initial rate guidance.

This is explained as a result of a combination of abundant demand for green bonds, Mirae Asset Securities’ steady issuance, trust-building through investor meetings, and the upgrade of credit rating outlook by international credit rating agencies. A Mirae Asset Securities official said, “Active promotion such as holding corporate briefings for major investors in March was reflected positively by investors,” adding, “We attracted abundant demand from global top-tier asset management companies and banks known as quality long-term investors, enjoying significant interest rate reduction effects compared to domestic won-denominated bond issuance.”

With discussions on the possibility of tapering (asset purchase reduction) by the US Federal Reserve (Fed) expected as early as the second half of this year, the proactive fundraising to achieve competitive spreads and interest rates at the optimal timing is also highly meaningful.

The investment industry evaluated that through this issuance, investors reaffirmed their trust in the profitability and stability of Mirae Asset Securities, which achieved operating profit of 1 trillion won for the first time among securities firms even during last year’s COVID-19 situation, and that by issuing foreign currency bonds for four consecutive years, it has further solidified its position as a regular issuer.

Mirae Asset Securities took the lead in implementing eco-friendly investment policies ahead of other securities firms by issuing the first global Socially Responsible Investment (SRI) bond among securities firms in 2019, and to lead ESG (Environmental, Social, and Governance) management in the securities industry, it established an ESG council under the board of directors last February. Following the issuance of social bonds, it has accelerated ESG management further by successfully issuing a global green bond.

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