[Consumerwide_Hayoung Chang Reporter/Yohan Bok Reporter] Domestic businesses have successfully issued Green Bonds. Green Bonds are initially limited to investments that are relevant to eco-friendly projects. Thus, it is closely tied to ESG management. LG Energy Solution succeeded in issuing a Global Green Bond on a 1 billion USD scale, Korea Water Resources Corporation, a Green Bond on a 0.25 CHF scale, and BNK Busan Bank, a Green Bond on a 60 billion Won scale.

On the 19th, LG Energy Solution announced that they have succeeded in issuing a Global Green Bond on a 1 billion USD scale (approx. 1.32 trillion KRW), which is a combination of a 0.4 billion USD bond with three year maturity, 0.6 billion USD with five year maturity.

The bonds were confirmed by the US for three years and five years. In contrast to government bonds, the interest rates are each +100bp and +130bp(1bp=0.01%p). The Green Fund Framework, which includes the use and management plans of Green Bonds, was evaluated as the highest level, SQS1, by Moody's ESG risk assessment.

Each 114 institutes and 186 institutes participated in the 3 year and 5 year global bond, which numbers 5 times the entire public offering. LG Energy Solution is planning on speeding up global manufacturing facility investment by issuing global bonds this time.  Earlier, LG Energy Solution announced during a first quarter conference call, that they have invested 6.3 trillion won in global battery manufacturing (CAPEX) last year, and they plan to expand investment over 50% this year.

Korea Water Resources Corporation has successfully issued (on the 18th) Green Bond on a 0.25 CHF scale (approx. 0.375 trillion won) with 2.1725% of the bond interest rate, which is the minimum among Korean business bonds (Senior unsecured bonds) issued in Switzerland this year. The money raised by this bond is going to be used for environmental projects, including expansion of recycled energy and investment to reduce flooding and drought disasters and replacing water facilities due to climate change. Korea Water Resources Corporation emphasized their business direction towards ESG management and efforts to overcome climate change. Besides, Korea Water Resources Corporation analyzed that domestic and overseas investors' worries might have been resolved regarding their financial status by issuing bonds this time. Thus, they see that their project portfolios have been highly evaluated in terms of environmental direction and potential growth, and achievement in ESG management.

Yoon Seokdae, the CEO of  Korea Water Resources Corporation said, "By succeeding to issue a Swiss Franc bond it's been confirmed that our efforts to enhance financial structure, including reducing debt rates and the competitivity of green business in the global market. We will constantly strive to grow even further as a trustworthy business in the sight of Korean citizens and investors from domestic areas and overseas."

BNK Busan Bank has issued the first Green Bond, which is a bond particularly made according to K-Taxonomy guidelines, among local banks on a 10 billion won scale. The Green Bond is on a 60 billion scale with one year and two month maturity. It has already completed the Korea Green  Taxonomy guidelines test facilitated by Nice Holdings (Credit rating business). Green Bond is exclusively used for environmental projects, including environmental projects and a new energy recycling business. The K-Taxonomy is structured by the Ministry of Environment and the Financial Services Commission. Busan Bank is planning on financing waste battery recycling and manufacturing second battery equipment projects. Busan Bank passed on the message that they will continually support environmental projects as a green bank while enhancing ESG management.