Korea Development Bank Issues Green Bonds | Be Korea-savvy

Korea Development Bank Issues Green Bonds

(image: Korea Bizwire)

(image: Korea Bizwire)

SEJONG, May 30 (Korea Bizwire)According to the Ministry of Strategy and Finance, the Korea Development Bank issued green bonds to domestic institutional investors yesterday.

The total amount of bonds issued was 300 billion won and the coupon rate stood at 2.53 percent. Maturity is three years.

Green bonds are special-purpose bonds with use limited to environmentally-friendly projects. Korean financial institutions had issued green bonds previously on seven occasions, but all were sold to foreign investors and never issued in Korean won.

The capital raised by the bonds will be invested in accordance to relevant guidelines that dictate that funds go towards green energy projects.

Investors will be given a full report on the matter. An official at the ministry said that the issuance of green bonds will bring about a positive effect in the market.

Moreover, “the government will review policy measures that can facilitate future issuance of green bonds,” said the official.

M. H. Lee (mhlee@koreabizwire.com)

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