GS Caltex to offer green bonds of at least 100 billion wonGS Caltex will offer at least 100 billion won ($84.3 million) in green bonds to invest in eco-friendly production facilities, the company said Thursday.
Green bonds allow companies to borrow money at lower interest rates for eco-friendly products or services. Projects in fields like renewable energy and electric vehicles (EV) around the world have used such financing.
Korean companies have just started tapping green finance, and this will be the first time for GS. The company has been investing to reduce hazardous emissions from its production sites in recent years.
The company will start a procedure on Oct. 21 to gauge market demand for green bonds with three-year and ten-year maturities. The minimum amount to be issued is 100 billion won and could increase depending on demand, GS said.
The green bonds will go on sale Oct. 29.
The money raised will be used to expand facilities at GS’s Yeosu refining plant in South Jeolla.
Upgrading facilities to make them cleaner has become more important due to the fine dust plaguing Korea throughout the year.
GS has been tracking environmental risks from its products and facilities and trying to clean up its act. Investments made so far include scrubbers to reduce sulfur oxide emission and a monitoring system to treat waste water.
“The green bond issuance is part of our business drive to establish ground for future growth by enhancing energy efficiency and producing outcomes that are environmentally approved,” GS said in a statement.
BY SONG KYOUNG-SON [email@example.com]