BNK Busan Bank said on the 18th that it signed a foreign-currency ESG syndicated loan borrowing agreement worth $400 million (about 609.6 billion won).
A syndicated loan is a lending method in which multiple financial institutions form a syndicate to lend a certain amount to a borrower under common terms. A total of 13 institutions from five countries will participate in the ESG syndicated loan that BNK Busan Bank is raising.
The "ESG syndicated loan" will be used as funding for ESG projects such as eco-friendly businesses and the creation of social value. The funds will be used for eco-friendly and social financing support and ESG projects to invigorate the regional economy, and to restructure existing high-interest foreign-currency borrowing.
HSBC participated as the arranger for this funding and recruited the syndicate. Busan Bank initially aimed to raise $300 million, but final investor demand exceeded $500 million, reflecting strong interest from global investment institutions.
Jung Hae-su, head of the funding and markets group at Busan Bank, said, "Based on a stable foreign-currency funding foundation, we will continue to strengthen our global funding competitiveness."