NongHyup Bank Successfully Issues $600 Million Social Bond

[Asia Economy Reporter Kiho Sung] NH Nonghyup Bank announced on the 22nd that it has successfully issued a global social bond worth USD 600 million to investors worldwide.

The bonds were issued as NH Nonghyup Bank's first dual tranche, consisting of USD 300 million each for 3-year and 5-year maturities. The interest rates were set at 0.926% (3 years) and 1.325% (5 years), which are 55 basis points (1bp = 0.01 percentage point) and 60 basis points above the US 3-year and 5-year Treasury yields, respectively.

The bonds received credit ratings of A1 (Moody's) and A+ (S&P), with over 126 institutions participating and securing orders totaling USD 2.2 billion, approximately 3.6 times the issuance amount of USD 600 million. Due to the strong interest from investors, the spread was tightened by 25bp and 30bp from the initially offered rates for the 3-year and 5-year tranches, respectively.

An NH Nonghyup Bank official explained, "Sustained improvements in recent years in performance, asset soundness, and capital adequacy have led to Moody's outlook being upgraded from 'Stable' to 'Positive,' earning trust in our sustainable growth. Additionally, actively promoting our importance as the only agricultural policy financial institution in Korea drew positive responses from overseas investors."

He added, "The funds raised through this issuance will be used to address social issues related to environmentally friendly, socially responsible, and sustainable management systems, including support for socially vulnerable groups, small business owners, and SMEs. We will continue to practice ESG management through active issuance of ESG bonds."

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