KDB Raises USD 278 Mn by Selling Green Bonds
- Business & Finance
The state-run Korea Development Bank (KDB) collected up to KRW 300 billion (USD 278 million) by issuing green bonds on May 29.
The three-year debt, which carries a coupon rate of 2.35 percent, represents the first instance that KRW-denominated green bonds successfully floated, according to the South Korean Ministry of Strategy and Finance.
The bank opted for the move on the back of Seoul’s intentions to revitalise the country’s shipping and shipbuilding industries through the construction of gas-fueled ships at domestic yards.
Green bonds are special-purpose bonds that limit the purpose of use to support green eco-friendly industries.
In June 2017, the KDB issued and priced USD 300 million of green bonds due 2022. This was the bank’s inaugural green bond offering.
The 2017 issue was to pay a quarterly floating rate coupon of 3-month USD LIBOR plus 0.725% per annum to a maturity date of July 6, 2022. The final order size was over USD 650 million across 50 accounts.
However, all of them have been issued with foreign currency denominated green bonds for overseas institutional investors.
Asia was allocated 46%, European accounts purchased 18% while US-based accounts purchased the remaining 36%.
World Maritime News Staff