NH Nonghyup Bank announced on the 28th that it had succeeded in issuing a global social bond worth US$600 million on the 27th.
The bonds were issued for $300 million each with 3.5-year and 5-year bonds.
The interest rates were fixed at 4.074% (3.5 years) and 4.318% (5 years), which are 90bps (1bp = 0.01% point) to the US 3-year Treasury bond yield and 110bps to the 5-year Treasury bond yield.
An official of NH Nonghyup Bank said, “Despite the recent increase in market volatility due to global inflation, the fact that it actively publicized its importance as the only agricultural policy financial institution in Korea drew a good response from foreign investors.”
The credit ratings of the issued bonds were A1 (Moody’s) and A+ (S&P).
Social bonds are special-purpose bonds that contribute to resolving social problems such as job creation, support for the vulnerable, and support for small and medium-sized enterprises (SMEs), and are a type of environmental, social and governance (ESG) bond.
The funds raised through this issuance will be used for social projects to support socially disadvantaged groups, farmers, small business owners and SMEs.
/yunhap news
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