KB Kookmin Bank Issues $700 Million Sustainable Bonds

[Asia Economy Reporter Buaeri] KB Kookmin Bank announced on the 10th that it has issued $700 million worth of senior sustainable bonds.

The newly issued global bonds are the first 'dual tranche' consisting of $400 million with a 3-year maturity and $300 million with a 5-year maturity. The interest rates were fixed at 2.20% and 2.492%, respectively, adding 60bp (1bp=0.01 percentage points) and 70bp to the U.S. Treasury yields of the same maturity.

More than 190 institutions participated, securing orders worth $2.7 billion, four times the total issuance amount of $700 million, which led to a reduction of 30bp in the spread compared to the initially offered rate.

The raised funds will be used to support eco-friendly and social projects under KB Kookmin Bank's sustainable finance management system.

A KB Kookmin Bank official said, "Despite heightened financial market volatility due to concerns over global central banks' tightening, KB Kookmin Bank attracted strong demand from global investors based on its excellent business performance and solid asset soundness. In particular, it is significant that ESG (Environmental, Social, and Governance) management actively pursued by the group and our bank, including the mid- to long-term carbon neutrality strategy 'KB Net Zero S.T.A.R,' received positive evaluations from investors."

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