Socially responsible investment bonds exceed W200tr in value

KRX office in Seoul. (KRX)

The total value of socially responsible investment bonds issued exceeded 200 trillion won for the first time, the Korea Stock Exchange said.

The total value of SRI bonds listed on the market stood at 200.2 trillion won as of June 10, a 154-fold increase from 1.3 trillion won in 2018, when an SRI bond was first listed. time.

Also known as environmental, social and governance bonds, thematic and social contribution bonds or green, social and sustainability bonds, SRI bonds are used to finance environmentally friendly or socially beneficial projects.

By type, social bonds accounted for 80% of the total value, or 159 trillion won; while green bonds (19.2 trillion won) and sustainable bonds (21.7 trillion won) accounted for around 10% each.

The number of listed companies that issued SRI bonds also exceeded 200, i.e. 41 times more than in 2018.

Companies have been actively issuing green bonds in an effort to achieve net zero carbon emissions after the South Korean government announced in 2020 its goal to achieve carbon neutrality by 2050.

Issuance of social bonds and sustainability bonds has also increased to support disadvantaged people after the World Health Organization declared COVID-19 a pandemic.

Among global exchanges where SRI bonds were listed, KRX came 11th in value of listed SRI bonds.

In the Asia-Pacific region, KRX came in third after the Singapore and Hong Kong exchanges.

By type, the value of green bonds issued on KRX ranked 15th among global exchanges; social bonds in fifth and sustainable bonds in tenth.

While socially responsible investments are expected to continue to grow as the world takes steps towards carbon neutrality and seeks to reduce social inequalities, KRS said it would support the execution of the government’s sustainable finance policy and try to meet market demand for SRI.

By Kim So-hyun ([email protected])

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