South Korea’s state-run Korea Development Bank (KDB) has successfully sold local currency-denominated social bonds worth total 1 trillion won ($815.9 million) to major local institutional investors with an aim to use the proceeds to help small businesses and dismal job market hit by COVID-19.
KDB said on Tuesday that it issued two-year social bonds in two tranches, each worth 400 billion won worth, on May 8 and May 12, respectively, at a coupon rate of 1.09 percent. The remaining five-year social bond worth 200 billion won was issued at a rate of 1.39 percent.
Social bond is a special purpose bond that is one of the three types of environmental social governance (ESG) bonds in which proceeds are limited to be used in social contributions such as to support small and mid-size enterprises and stabilize job market.
The other two ESG bonds are green and sustainable bonds.
KDB has been an active seller of ESG bonds ever since it issued 300 billion won in won-denominated green bonds for the first time in Korea and 300 billion won in social bonds in 2018. The state lender also successfully sold 800 billion won in social bonds last year.
KDB plans to use the proceeds from the latest bond sale to carry out social responsibility in the financial sector by supporting small- and mid-size enterprises struggling from the impact of the coronavirus and stabilizing the job market.
Source PulseNews