Hana Bank Successfully Issues $600 Million ESG Bonds

Successful Capture of Global Investors' Sentiment Amid Market Volatility Including US Interest Rate Hikes
Continuous Issuance of ESG Bonds to Promote Active ESG Management Practices

[Asia Economy Reporter Sim Nayoung] Hana Bank (President Park Seong-ho) announced on the 24th that it has successfully issued ESG bonds (sustainability bonds·144A·RegS) worth 600 million dollars. This bond was issued in the form of sustainability bonds, and it is significant in that it was the first time to confirm the investment sentiment of global investors toward Korean bonds after the emergence of geopolitical risks.

The maturity of the bonds issued this time is 5 years, and after completing investor recruitment through the Asian, European, and US markets, the yield was set at 3.309%, which is 32.5 basis points lower than the IPG (initial price guidance) and 92.5 basis points above the US 5-year Treasury yield. The final coupon rate was fixed at 3.25%.

Hana Bank stated that despite the difficult environment including prolonged war, soaring raw material prices, and hawkish remarks by US Federal Reserve Chairman Powell earlier this week, it reduced the spread by more than 30 basis points and simultaneously increased the initial target of 500 million dollars by 100 million dollars.

The bond issuance was jointly led by JP Morgan, Bank of America, Standard Chartered, Soci?t? G?n?rale, and MUFG. It received ratings of ‘A1’ and ‘A+’ from international credit rating agencies Moody’s and Standard & Poor’s, respectively.

Last year, Hana Bank issued ESG bonds totaling 2.1 trillion won in both Korean won and foreign currencies. Hana Financial Group is promoting ESG finance by announcing ▲a total of 60 trillion won in ESG finance by 2030 ▲complete zero carbon emissions and coal project financing by 2050 ▲selection of three core strategies and nine key tasks for ESG management implementation ▲establishment of a dedicated ESG organization within the board of directors called the ‘Sustainability Management Committee’.

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