KB Kookmin Card Becomes First Korean Credit Finance Company to Secure Sustainability-Linked Syndicated Loan

$400 Million Syndicated Loan
Consortium Formed with Banks from Hong Kong, Taiwan, and Japan

KB Kookmin Card announced on October 21 that it has successfully secured a $400 million (approximately 570 billion KRW) sustainability-linked syndicated loan, marking the first time a domestic credit finance company has achieved this.

Exterior view of KB Kookmin Card headquarters in Jongno-gu, Seoul. KB Kookmin Card

KB Kookmin Card raised the syndicated loan by forming a syndicate with global banks from Hong Kong, Taiwan, Japan, and other countries.

A syndicated loan is a method of lending in which a group of multiple financial institutions forms a syndicate to provide a borrower with a set amount of funds under the same conditions. The sustainability-linked approach sets the borrower's loan interest rate in connection with ESG (Environmental, Social, and Governance) management targets.

This funding was structured as a three-year single maturity (tranche) sustainability-linked loan, with a mechanism to lower the interest rate if the key performance indicators (KPIs) specified in the agreement are achieved.

The KPIs were established in accordance with ESG management objectives, including support for eco-friendly initiatives, small business owners, and credit improvement for low-credit individuals.

Following its $400 million syndicated loan last year, KB Kookmin Card has once again secured $400 million from the global loan market.

Sustainability-linked loans are products in which consensus among the syndicate members regarding the company's strategic direction is crucial. The company explained that its strong investor credibility, built up in overseas markets, and solid asset soundness have enabled a stable funding environment.

A KB Kookmin Card representative stated, "Despite high global macroeconomic volatility, this funding is the result of continuous communication and trust-building with global investors. It is significant in that it establishes a sustainable overseas funding base."

This issuance was solely managed by Korea Investment & Securities. The funds will be used for general operating expenses.

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