IBK Investment & Securities Issues 80 Billion KRW Green Bonds for POSCO Future M with 800 Billion KRW Scale

Issued as Kimchi Bond
Green Bond with Highest Rating Certified by Korea Credit Rating
Used for Facility Investment in POSCO Future M Canada Cathode Material Production Subsidiary

IBK Investment & Securities announced on the 29th that it successfully issued a $60 million (approximately 80 billion KRW) Kimchi bond for POSCO Future M the previous day.

IBK Investment & Securities headquarters building. (Provided by IBK Investment & Securities)

A Kimchi bond is a bond issued by domestic and foreign companies in South Korea to raise foreign currency such as dollars, serving as a means for domestic companies in need of dollars to secure funding.

IBK Investment & Securities has supported Korean companies in raising dollar funds more cheaply than bank loans, and successfully issued two Kimchi bonds in 2022 as well.

This Kimchi bond is particularly significant as it received green bond certification.

POSCO Future M is the only company in Korea that produces and supplies both cathode and anode materials, which are key materials for secondary batteries. The funds raised through this bond issuance will be fully utilized for facility investment at its cathode material production subsidiary in Canada.

Korea Ratings highly evaluated the environmental improvement effects of this investment and awarded the highest green bond rating, GB1, to the POSCO Future M Kimchi bond. GB1 is given to bonds that receive the highest grades in project eligibility and operational system evaluations based on international organization principles.

Seo Jeong-hak, CEO of IBK Investment & Securities, said, "We are very proud to achieve two outcomes simultaneously through the issuance of the POSCO Future M Kimchi bond: practicing green finance and supporting corporate funding." He added, "We will continue to do our best to discover IBK Investment & Securities’ unique green finance models that benefit Korean companies and ESG."

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