June 29 (Renewables Now) - Korea Development Bank (KDB) on Tuesday issued and priced USD 300 million (EUR 263m) worth of green bonds due 2022 as part of its inaugural green bond offering.
The South Korean government-owned financial institution said it had received demand from accounts across Asia, Europe and the US, and that the issue was more than two times oversubscribed with a final order size surpassing USD 650 million. Asia and the US were allocated 46% and 36%, respectively. When it comes to investor type, bank treasury took 32% and fund managers got 26%.
The floating rate senior unsecured green bonds pay a quarterly floating rate coupon of 3-month USD LIBOR plus 0.725% per annum to a maturity date of July 6, 2022. Bank of America Merrill Lynch, Credit Agricole CIB and HSBC served as the joint bookrunners.
The net proceeds from the offering will be used to finance the development, construction or expansion of renewable energy projects, including solar, wind and biomass schemes.
(USD 1.0 = EUR 0.877)