The Korea Development Bank (KDB) announced on June 28 that it successfully issued green bonds worth a total of US$300 million. These are the first green bonds issued by the KDB. The purpose of the bonds is to invest in projects for environmental protection and response to climate change.
Those bonds have a maturity of five years. The bank explained that they have advantageous interest rate conditions without a new issue premium, three-month USD LIBOR rate plus 0.725% to be specific.
Asian investors took up 46% of those investing in the bonds, followed by U.S. (36%) and European (18%). By institution, asset management firms and pension funds accounted for 40%, followed by banks and so on (37%) and international financial institutions and central banks (23%).
“We hope that this successful bond issuance will lead to a greater social interest in response to climate change, more active financing for the same purpose and an increase in investment in the private sector,” the KDB said, adding, “We will continue to prepare financial resources in cooperation with the government so that various green industry sectors can benefit more and more from the resources.”