Samsung Securities is going to issue ESG grade-certified bonds for the first time in the industry.
Samsung Securities announced on Feb. 15 that it will issue ESG bonds worth 70 billion won in five-year maturity on Feb. 25 after receiving the green bond's highest grade "Green 1" during the ESG certification evaluation of NICE Investors Service credit evaluation.
Green 1 is the highest grade among green bonds issued for the purpose of investing in eco-friendly and climate change crisis response projects.
"Samsung Securities' ESG bond management system is in line with the principles of green bonds of the International Capital Markets Association (ICMA) and the green bond guidelines of the Ministry of Environment of Korea," Nice Investors Service said.
Samsung Securities is planning to use the funds raised from the issuance of ESG bonds for its Midstream project in the U.S. and solar power project in France. Midstream is a business that purifies and liquefies unrefined natural gas produced through exploration and drilling and transports it to downstream.
Meanwhile, ESG is drawing keen attention as the Joe Biden administration, which has an eco-friendly policy in the U.S., was launched.
In Korea alone, 1.5 trillion won worth of ESG bonds were issued last month alone this year. In addition to Samsung Securities, Hyundai Motor and NH Investment & Securities are also pushing to issue ESG bonds.
ESG bonds are classified into three types: green bonds, social bonds, and sustainability bonds.
