More ESG bonds issued in 2024 but by less firms: Report

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More ESG bonds issued in 2024 but by less firms: Report

Buildings of major companies in central Seoul on Oct. 26, 2022. [YONHAP]

Buildings of major companies in central Seoul on Oct. 26, 2022. [YONHAP]

 
Sales of environment, social and governance (ESG) bonds in Korea increased from a year earlier in 2024, driven by government-backed financial support, but the number of issuing firms declined, a report showed Tuesday.
 
According to the report by Korea Investors Service, a total of 47.2 trillion won ($34.3 billion) worth of ESG bonds were issued last year, up 12.2 percent from the previous year.
 

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An ESG bond is a type of sustainability debt offering aimed at financing corporate activities in environmentally friendly and sustainable projects.
 
The report attributed the rise in ESG bond issuance to government-led financial policies promoting green initiatives.
 
Despite the growth in total issuance, the report offered a cautious outlook for the local ESG bond market, noting the number of issuers had dropped sharply to 91 in 2024 after peaking at 154 in 2021.
 
 

Yonhap
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