Saneun Issues 30 Billion Won Green Structured Bonds

Expectations for Expansion of the Green (ESG) Bond Market Scope

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] The Korea Development Bank announced on the 12th that it has issued the country's first won and foreign currency 'green structured bonds' to support eco-friendly projects such as pollution prevention and management, and renewable energy.

The funds raised in won will be used for green eco-friendly projects such as pollution prevention and management (use of waste synthetic resin) and energy efficiency (waste heat recovery). The allocation of funds and contributions to environmental improvement will be reviewed annually by an external organization and disclosed on the website until the funds are fully utilized.

The foreign currency funds will be used for renewable energy (solar and wind power generation) and secondary battery facility investments for electric vehicles, and details of fund usage and environmental improvement effects will be disclosed annually on the website at the beginning of each year.

The bank evaluated that this issuance of green structured bonds introduced a new form of green bonds to the market, departing from the existing general green bonds, contributing to the expansion of the green (ESG) bond market to allow participation from various investors. It also expects to provide a wide range of investment options for long-term investors.

A bank official stated, "In addition to continuous issuance of green bonds, as a representative policy financial institution, we will play an important role in activating green finance, including responding to climate change and providing financial support in the environmental sector."

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