DB Financial Investment to Lead 100 Billion KRW Incheon Urban Corporation ESG Bond Issuance

[Asia Economy Reporter Park Jihwan] DB Financial Investment announced on the 7th that it participated as the lead underwriter in the issuance of a 100 billion KRW social bond by Incheon Urban Corporation (iH), the first ESG bond issued by a local public enterprise.

The social bond, issued on September 29, has a 5-year maturity with an interest rate of 2.284%. This rate is 0.01% lower than the corporation's average market rate. The bond received the highest social bond rating of ‘S1’ from Korea Ratings, which conducted the certification evaluation.

The proceeds from this social bond issuance will be used to finance the public housing construction project, including the Gyeyang Technovalley public housing district development project and rental housing within the district, which is one of the third-phase new towns.

A DB Financial Investment official stated, "We consider it meaningful to have led the issuance of the first ESG bond by a local public enterprise, and we plan to continuously strengthen ESG-related operations by actively participating in the local public enterprise ESG bond market going forward."

So far this year, DB Financial Investment has recorded over 1 trillion KRW in underwriting performance in the public enterprise ESG bond market, including Korea Water Resources Corporation ESG bonds (50 billion KRW), Korea Railroad Corporation ESG bonds (300 billion KRW), and Korea Land and Housing Corporation green bonds (630 billion KRW).

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