Sangun Supports ESG-Certified Bond Issuance by Five Mid-Sized Companies Worth 120 Billion Won

Gyeryong Construction Industry, JNK Heater, Korea Fiber, Daechang and One More Company

[Asia Economy Reporter Yoo Je-hoon] The Korea Development Bank announced on the 26th that it supported the issuance of a total of 120 billion KRW in ESG-certified corporate bonds by five mid-sized companies (Gyeryong Construction Industry, JNK Heater, Korea Fiber, Daechang) to expand the base of Environmental, Social, and Governance (ESG) bonds.

This support is part of KDB's ESG management support measures currently being implemented to promote ESG management among small and mid-sized enterprises. Issuing companies were selected among those with clear ESG investment demand and limited experience in public bond issuance.

Among the issuers, four companies?Gyeryong Construction Industry, JNK Heater, Korea Fiber, and Hwashin?are issuing ESG bonds for the first time, while Daechang is participating for the second time following its participation last year. Previously, KDB supported the issuance of ESG bonds worth 425 billion KRW for 15 companies over three rounds last year.

This issuance, like the first to third rounds, is an example of issuing ESG bonds through the P-CBO (a structure that issues securitized bonds based on newly issued bonds) method. The structure involved KDB providing credit enhancement and issuing securitized bonds based on each company's private placement bonds as underlying assets.

KDB stated, "We plan to continuously support corporate ESG bond issuance through the ESG bond securitization program in the future."

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