KEPCO Issues 400 Billion KRW ESG Bonds to Accelerate Carbon Neutrality Implementation

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Electric Power Corporation (KEPCO) issued 400 billion KRW worth of won-denominated ESG (Environmental, Social, and Governance) bonds on the 4th to implement carbon neutrality.

ESG bonds are bonds aimed at enhancing social value by improving Environment (E), Social (S), and Governance (G) aspects. KEPCO achieved the first-ever three consecutive years of issuance by a domestic energy company with 200 billion KRW in 2019, 200 billion KRW in 2020, and 400 billion KRW this year.

The funds raised this time will be used for projects such as ▲expansion of renewable energy-related facilities ▲job creation ▲support for small and medium-sized enterprises ▲energy efficiency improvement projects ▲expansion of electric vehicle charging facilities. Details of fund usage will be transparently disclosed on the website.

Additionally, the fund utilization projects have secured credibility by obtaining certification from Sustainalytics, a globally recognized ESG certification agency, confirming compliance with the International Capital Market Association (ICMA) standards for sustainable bonds.

The interest rates for the won-denominated ESG bonds were set at 1.627% for 1-year maturity, 2.133% for 2-year maturity, and 2.528% for 5-year maturity, considering KEPCO’s excellent external creditworthiness and credit rating. These rates are 1 to 2 basis points lower than the average market yield of power bonds.

Through this bond issuance, KEPCO has additionally established a financial foundation for carbon neutrality and social value implementation projects by issuing 1.3 billion USD in global green bonds and 800 billion KRW in won-denominated ESG bonds over the past three years.

A KEPCO official stated, "We plan to actively play a central role in '2050 Carbon Neutrality' by expanding investments in renewable energy projects, developing core carbon-neutral technologies to lead energy transition, and fostering solidarity and cooperation with the power industry."

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