SRI bond issues in Korea nearly double last year to top $100 bn

Bonds themed on Socially Responsible Investment (SRI) nearly doubled in South Korea with the balance topping $100 billion last year.

The outstanding value circulating SRI bonds totaled 159.6 trillion won ($133.8) as of the end of last year, up 94.4 percent from a year earlier, according to the Korea Exchange (KRX) on Monday.

The securities in the category totaled 1,149, up 110.4 percent from the previous year, and issuers totaling 175, up 430.3 percent from the previous year.

The turnover from new entrants totaled 86.8 trillion won.

More than 90 percent were issued by AA or higher grade and 42.1 percent dated three years or shorter.

SRI bonds raise funds for investments that can leave a positive impact on the environment or the society. There are three types of SRI bonds: green bonds, social-conscious bonds, and sustainable bonds.

Social bonds to back investments to bolster social values raised 61.8 trillion won. Green bonds designed to finance environmentally friendly projects such as renewable energy projects or social infrastructure raised 12.5 trillion won. Sustainable bonds committed to environmentally friendly and projects for social values drew 12.5 trillion won.

The pioneer in SRI bond was Korea Development Bank (KDB Bank) issued in May 2018.

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