The Korea Exchange (KRX) said Tuesday it has been running a website providing all information on socially responsible investment (SRI) bonds in both Korean and English since June.
An SRI bond means a bond whose issuing proceeds are used for projects that are eco-friendly or generate social benefits.
Issuers of such bonds must establish a bond management framework and be reviewed by external institutions to see whether they comply with the principles established by international organizations including the International Capital Market Association and the Climate Bonds Initiative.
In the past, Korea lacked an appropriate institution providing information and statistics on SRI bonds. Because each bond issuer disclosed their information separately, it was difficult for investors to gather all needed information.
The KRX said it decided to open a public information portal regarding SRI bonds in order to provide transparent information on the bonds and to help investors save money and time. An English portal is also available for foreign investors.
By registering SRI bonds with the portal, those bonds are officially recognized as qualified and their credibility can be guaranteed. This allows issuers to make stable financing through the domestic bond market.
The KRX said it hopes that the opening of the website for SRI Bonds will serve as an opportunity to revitalize the domestic SRI bond market. Amid growing interest in environment and social causes around the world, the issuance of SRI bonds has increased rapidly in recent years.
According to Bloomberg, the value of SRI bonds issued globally jumped to $162 billion in 2018 from $85 billion in 2016. In Korea, the issuance of SRI bonds has continued to rise since the Export-Import Bank of Korea (Eximbank) issued green bonds overseas in 2013.
As of Monday, 464 types of SRI bonds collectively worth 71.8 trillion won ($61 billion) were traded on the KRX bond market, according to the bourse operator.
The KRX said it signed memorandum of understandings with several external ratings agencies to help SRI bond issuers better receive external reviews. The bourse operator has also offered financial support for the issuers.
Source The Korea Times