KB Financial Group headquarters in western Seoul(Yonhap)
Major South Korean banking group KB Financial Group said Tuesday that it has issued 500 billion won ($439.1 million) worth of hybrid bonds focused on environmental, social and governance investment.
They are the first won-denominated ESG bonds issued by a banking group here, the firm said. While a growing number of local financial institutions have floated ESG bonds in recent years, it was usually the major banking group’s flagship lenders that handled the business, not the holding company itself.
The bonds were issued in two tranches. The first tranche consisted of five-year bonds, amounting to 435 billion won in total and offered at a low-interest rate of 3 percent. The second, worth 65 billion won, consisted of 10-year bonds that carried a fixed rate of 3.28 percent.
Hybrid bonds generally combine both debt and equity characteristics.
Last week, KB Financial was certified by global auditing and financial advisory firm Deloitte for its ESG bond management system and bond issuance.
By Jung Min-kyung (firstname.lastname@example.org)