Eximbank raises 750 mil. euros with newly issued green bond

Export-Import Bank of Korea (Eximbank) headquarters in Seoul's financial district of Yeouido / Courtesy of Eximbank

The Export-Import Bank of Korea (Eximbank) has raised 750 million euros ($855 million) worldwide by selling newly-issued bonds aimed at supporting environment-friendly projects, the company said Wednesday.

The green bond has a three-year maturity. It was issued by taking into account preferences of euro-denominated bond investors, as well as the new Korean government’s eco-friendly policy objectives.

Eximbank said it originally planned to sell 500 million euros but scooped 750 million euros on the back of strong demand from investors.

It raised 88.3 percent of the 750 million euros from Europe and the Middle East, and the remaining 11.7 percent from Asia.

Institutional investors, central banks, international organizations and public entities made up some 49.2 percent of all investors.

Commercial banks made up another 16.5 percent share and asset management firms took up another 34.3 percent.

Eximbank said the green bond will help the company successfully return to the European bond market as an issuer of sovereign, supranational and agency (SSA) bonds. Such bonds are issued by highly creditworthy institutions, providing higher yields with less risk, and often associated with positive social impacts.

“We’re glad to consolidate our competence concerning SSA bonds, as well as the environmental, social and corporate governance (ESG) field,” the company said.

It assessed that the bond “reaffirms global investors’ expectations for a rebound in the Korean economy and its strong external credibility, despite economic challenges in and outside the country.”

The bank said the funds raised will be used on renewable energy and other resources for sustainable growth. “We’ll continue to issue ESG bonds and will actively expand efforts in sustainable finance to take a part in the international community’s goal for carbon neutrality." (Advertorial)