Busan Bank Signs $400 Million Foreign Currency ESG Syndicated Loan Agreement

Utilizing ESG Projects to Revitalize the Local Economy

BNK Busan Bank announced on June 18 that it has signed a foreign currency ESG syndicated loan agreement worth a total of 400 million dollars, with 13 institutions from 5 countries participating.

This financing was arranged by HSBC, which acted as the lead manager and organized the syndicate. A syndicated loan is a method of lending where several financial institutions form a syndicate to jointly provide funds, making it possible to raise large-scale capital and maintain a stable borrowing structure.

Busan Bank initially aimed to raise 300 million dollars, but due to strong interest from global investors, with final investment demand exceeding 500 million dollars, the bank exercised the greenshoe (overallotment option), expanding the final amount to 400 million dollars. The financing is structured into three-year and five-year tranches.

The funds raised will be used for ESG projects, including supporting environmentally friendly and social finance initiatives, and revitalizing the local economy. The bank also plans to use the funds to restructure its existing high-interest foreign currency borrowing. Through this, Busan Bank expects to convert its existing high-cost foreign currency funding structure into a medium- to long-term low-cost structure, resulting in cost savings.

Jung Hae-soo, Head of Capital Markets Group at Busan Bank, said, "Securing investment demand that exceeds our target, even amid high volatility in the global financial markets, demonstrates Busan Bank’s external credibility," adding, "We will continue to strengthen our global funding competitiveness based on a stable foreign currency funding platform."

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