KB Kookmin Signs $300 Million Syndicated Loan Agreement

[Asia Economy Reporter Bu Aeri] KB Kookmin Bank announced on the 14th that it has completed the signing of a syndicated loan agreement worth USD 300 million (approximately KRW 381.4 billion) through a sustainability-linked loan.

A sustainability-linked loan is a financing instrument structured to link the borrowing interest rate with the company's sustainability activities, where achieving the set ESG (Environmental, Social, and Governance) targets during the funding period results in an annual reduction of the interest rate.

The loan amount is USD 300 million with a maturity of 5 years.

The interest rate is based on the US 3-month risk-free benchmark rate (Term SOFR) plus an additional 0.88% per annum, and under the sustainability-linked loan conditions, the interest rate is reduced by 0.015% per annum each year upon achieving the ESG targets.

A KB Kookmin Bank official explained, "This is the lowest interest rate level among the funds raised and issued amid unstable capital market conditions."

This syndicated loan was led by OCBC as the lead arranger, and the investor composition was diverse, including regions such as Singapore, China, and Taiwan.

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