Busan Bank Successfully Raises $300 Million Through Foreign Currency Syndicated Loan

Successful Syndicated Loan Procurement After 9 Years... Utilized for Inclusive Finance Including ESG

[Asia Economy Reporter Yu Je-hoon] BNK Busan Bank announced on the 5th that it completed a $300 million (approximately 410 billion KRW) 5-year foreign currency social syndicated loan borrowing contract with 22 institutions from 6 countries on the 2nd.

A social syndicated loan is a compound term combining a 'social loan,' which uses raised funds for social projects, and a 'syndicated loan,' where two or more banks form a lending consortium to raise large sums under common terms. Busan Bank succeeded in syndicated loan procurement for the first time in 9 years since borrowing 10 billion yen (approximately 98 billion KRW) in 2013.

Since early July, Busan Bank, which has been pursuing syndicated loan procurement, implemented procurement strategies considering the unstable foreign currency procurement market, including ▲adjusting investor recruitment schedules to avoid overlap with other financial institutions ▲promoting social syndicated loans to secure Environmental, Social, and Governance (ESG) investment demand ▲collaborating with Japan’s Mizuho Bank, which has abundant procurement experience.

As a result, within one week of starting the lender group recruitment, the investment intention amount exceeded $300 million, and the final investment commitment amount surpassed $500 million. However, considering the scale of foreign currency borrowings maturing at the end of this year, Busan Bank decided to raise $300 million as planned.

Kim Cheong-ho, Head of the Treasury Market Division at Busan Bank, said, "By completing the country's first foreign currency social syndicated loan contract, we have been able to proactively secure foreign currency liquidity in a highly volatile market." He added, "The funds secured through this contract will be used for operating inclusive finance such as ESG."

Meanwhile, Busan Bank issued the first yuan Formosa public bond among general banks in 2018 and diversified its procurement channels by issuing $20 million in foreign currency social bonds for the first time among regional banks in May.

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