Korea Eximbank joins forces with CGIF on green bondsThe Export-Import Bank of Korea, or Korea Eximbank, announced Thursday it will provide foreign investors with a payment guarantee for green bonds issued by Hanwha Solutions, which are expected to worth 1 billion Chinese yuan ($153 million).
The state-run Korea Eximbank plans to guarantee 50 percent of the bonds, while the Credit Guarantee and Investment Facility (CGIF) of the Asian Development Bank (ADB) will be in charge of the other half.
Established in 2010 by the ADB in a bid to invigorate the Asian bond market, CGIF is a regional trust fund that provides payment guarantees for bonds issued by corporations in Korea, Japan, China and ASEAN countries. Korea has a 14.3 percent stake in the CGIF via Korea Eximbank.
Korea Eximbank cooperated with the CGIF back in 2019, jointly supporting CJ Logistics for the company’s bond issue in Singapore, thus marking the second time the two joined forces for a financial support project.
Cooperation between Korea Eximbank and the CGIF is considered a good example for Korean corporations to follow in funding businesses through the regional bond issue.
Meanwhile, it is the first time that Hanwha Solutions has floated a green bond, said the chemical company. Green bond refers to a designated bond intended to fund eco-friendly and new renewable energy businesses.
Hanwha Solutions, a leading chemical company in the petrochemicals sector, ranked seventh in the global solar energy market in terms of the production capacity of photovoltaic modules.
The fund raised by the green bonds will be used for strengthening the company’s environment, social and governance, or ESG, management, expanding the financial capital of its Chinese unit and repayment of the existing loans.
“Korea Eximbank will continue to support Korean businesses in the new renewable energy sector through its extensive global network including the CGIF,” said an official at Korea Eximbank.
By Shin Ha-nee [firstname.lastname@example.org]