The Export Import Bank of Korea returned to the global green bonds market after a gap of three years to successfully raise $400 million.
One of the pioneers of the green bonds market in Asia, the Export Import Bank of Korea (Kexim) recently raised $400 million, offering investors bonds for a 5-year period with semi-annual coupon rate of 2.125%. The offer met with overwhelming response from prospective investors who were willing to pour in $1.1 billion, or about three times the offer size.
Kexim was among the first Asian banks to launch green bonds when its raised $500 million in 2013. The bank has dispersed all funds raised from the first issue and had been looking to float a fresh offer.
The investor mix in the new offer was in complete contrast to that in the first offer. European and American investors were the dominant entities in the 2013 offer, while in the new offer 48% of the investors were from Asia, 35% from Europe, and 17% from the US. The trend is indicative of the emergence of the developing economies in the global green bonds market.
The green bonds issue came at a time when equity markets around the world are facing a meltdown. No wonder that investors are looking to safer investment avenues which bodes well for banks, multilateral financial institutions and companies looking to raise funds through green bonds.
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