BNK Busan Bank Successfully Raises USD 300 Million Through 'Foreign Currency Social Syndicated Loan'

Busan Bank Headquarters.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] BNK Busan Bank completed a $300 million five-year foreign currency social syndicated loan borrowing contract on the 2nd, targeting 22 institutions across 6 countries.

The 'social syndicated loan' is a compound term combining 'social loan,' which uses raised funds for social projects, and 'syndicated loan,' where two or more banks form a lending consortium to raise large sums under common terms.

Busan Bank succeeded in syndicated loan financing for the first time in nine years since borrowing 10 billion yen in 2013.

Since early July, Busan Bank has pursued syndicated loan financing and implemented procurement strategies considering the unstable foreign currency funding market, including ▲adjusting investor recruitment schedules to avoid overlap with other financial institutions ▲promoting social syndicated loans to secure ESG investment demand ▲collaborating with Mizuho Bank, which has extensive procurement experience.

Within one week of starting the lender 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 proactively secured foreign currency liquidity to respond to the highly volatile market. The funds secured through the contract will be used for inclusive finance operations such as ESG (environment, social, governance).”

Busan Bank issued the yuan Formosa public bond as the first general bank in 2018 and diversified its funding channels by issuing $20 million in foreign currency social bonds as the first regional bank in May.

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