IBK Industrial Bank, Issues $500 Million Foreign Currency Sustainable Bonds

[Asia Economy Reporter Jin-ho Kim] IBK Industrial Bank announced on the 14th that it has successfully issued $500 million worth of foreign currency sustainable bonds in the global bond market.

The bond maturity is 3 years, and the issuance interest rate is a fixed rate of 0.639% (US Treasury rate + 20bp), marking the lowest spread ever recorded among domestic institutional issuances. Despite increased market volatility due to the resurgence of COVID-19, the bank stated that investors' strong interest in social and environmental value investments led to the successful issuance at the lowest spread ever.

Sustainable bonds are a type of Environmental, Social, and Governance (ESG) bonds that combine the characteristics of green bonds, which invest in eco-friendly projects, and social bonds, which support job creation and socially vulnerable groups.

IBK plans to use the funds raised from the bond issuance for domestic and international eco-friendly related projects and to support small and medium-sized enterprises and small business owners struggling due to COVID-19.

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