Woori Bank Successfully Issues 400 Billion KRW in ESG Bonds

[Asia Economy Reporter Song Seung-seop] Woori Bank successfully issued 400 billion KRW worth of ESG (Environmental, Social, and Governance) bonds in the form of Korean won subordinated bonds (contingent capital securities) for sustainable management on the 12th.

The issuance was initially planned at 270 billion KRW, but due to strong interest from investors and participation from institutional investors, demand reached nearly 1.5 times the target amount, leading to a final issuance amount of 400 billion KRW.

The bonds have a maturity of 10 years and were issued at a fixed interest rate of 4.46% per annum. The rate is based on the 10-year government bond yield plus an issuance spread of 1.10 percentage points. This is the lowest rate among subordinated bonds issued by commercial banks this year and also the largest issuance amount.

Notably, these bonds are sustainable bonds combining 'Green Bonds' used for green finance such as renewable energy development and 'Social Bonds' aimed at supporting socially vulnerable groups. Additionally, Woori Bank's BIS ratio is expected to increase by 0.25 percentage points through this issuance.

A Woori Bank official stated, “In the first half of the year, the bond market was challenging due to rising bond yields and weakened investor sentiment toward long-term bonds. However, with recent sharp declines in interest rates, we quickly scheduled the issuance and held investor briefings, enabling the successful issuance of these bonds.”

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