Woori Bank issues $700 million in senior ESG bonds

Woori Bank announced on the 18th that it had successfully issued $700 million in foreign-currency ESG bonds through a dual-tranche structure with senior three- and five-year maturities.

This is the first foreign-currency bond issuance by a commercial bank this year. Woori Bank had prepared extensively since last year to issue the bonds as sustainability bonds (ESG bonds).

In October last year, Woori Bank representatives visited Dubai, Abu Dhabi and Hong Kong to hold non-deal roadshows for potential investors. This year, they also held a series of investor meetings and conference calls with institutional investors in Singapore and New York, actively highlighting the bank’s stability and profitability.

These efforts drew a strong response from overseas investors. In particular, investors reportedly praised Woori Bank for maintaining low exposure to Hong Kong H Index-linked ELS products and project financing through rigorous risk management.

Woori Bank issued the bonds on favorable terms: the three-year tranche at U.S. Treasuries plus 75 basis points and the five-year tranche at U.S. Treasuries plus 85 basis points, with a 4.750% coupon on both. Proceeds will be used for domestic shared-growth finance and overseas green energy projects.