SEOUL, June 17 (Yonhap) — South Korea’s state-run Korea Asset Management Corp. (KAMCO) said Thursday it has sold 200 billion won (US$177 million) in environment, social and governance (ESG) bonds to help support pandemic-hit households and companies.
The five-year bonds, which mark KAMCO’s first ESG debt sale in line with standards set by the International Capital Market Association, carry an annual interest rate of 1.884 percent.
The state asset manager said the proceeds will be used in helping the vulnerable by purchasing bad loans and providing liquidity to small and midsized enterprises.
KAMCO said it plans to float 1.1 trillion won worth of ESG bonds in the second half of the year to raise funds for socially responsible investing, including support for companies hit by the coronavirus outbreak.
KAMCO President Moon Sung-yu said it will issue 3 trillion won worth of ESG bonds by 2023 to help support pandemic-hit corporations and other environmentally friendly projects.