Thursday, October 17, 2019
Mirae Asset Daewoo Issues U.S.-dollar Denominated SRI Bond
The World's First Brokerage to Issue SRI Bond
Mirae Asset Daewoo Issues U.S.-dollar Denominated SRI Bond
  • By Michael Herh
  • May 1, 2019, 10:01
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Mirae Asset Daewoo has simultaneously issued a U.S. dollar-denominated socially responsible investment (SRI) bond with a maturity of three years and a senior bond with a maturity of five years.

Mirae Asset Daewoo announced on April 30 that it has succeeded in simultaneously issuing a U.S. dollar-denominated socially responsible investment (SRI) bond with a maturity of three years and a senior bond with a maturity of five years. The total value of the bonds is US$600 million and the three-year bond is the first SRI bond in the global securities market.

The company issued the first international public bond in South Korea, which has a maturity of three years, in November last year and established a yield curve with the recently issued bonds. A total of 254 institutions participated in the 1/7 probability.

Based on the popularity, Mirae Asset Daewoo lowered the final spreads by 25 and 27.5 basis points to 95 and 112.5, respectively. The coupon rates are 3.125 percent and 3.375 percent, respectively.

SRI bonds are characterized by being used for environmental protection and social contribution purposes. These days, South Korean institutions as well as their global counterparts are issuing an increasing number of SRI bonds. The funds procured as a result of the recent SRI bond issuance by Mirae Asset Daewoo are slated to be used for investment in green buildings, housing projects for socially vulnerable people, etc.