State gas company issues $500 mln sustainability bonds with 10-year maturity

Lim Chang-won Reporter() | Posted : July 10, 2019, 15:15 | Updated : July 10, 2019, 15:15

[Courtesy of KOGAS]

SEOUL -- Korea Gas Corp. (KOGAS) has raised $500 million by issuing sustainability bonds, becoming the first public company in South Korea to issue ESG (environmental, social and governance) bonds with a 10-year maturity.

Sustainability bonds are floated to exclusively finance a combination of green and social projects. KOGAS said that it dew a high response from investors during a roadshow as a leading public company which plays a key role in supporting South Korea's eco-friendly energy policy.

The government has unveiled a roadmap to secure its firm leadership in the global market by producing 6.2 million fuel cell vehicles for domestic consumption and exports by 2040. KOGAS is leading a campaign to popularize hydrogen as alternative clean energy. In April, the state gas company unveiled a roadmap to create 25 hydrogen production facilities and a plumbing network by 2030.

ESG-related bonds have been issued mostly by state organizations or institutions to finance environmental or social projects that help boost transparency and sustainability in society, but they are now favored by corporations.
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