이 기사는 2021년 04월 19일 07:54 thebell 에 표출된 기사입니다.

Jeju Bank has successfully raised 150 billion won ($134 million) from its maiden issuance of ESG bonds on Thursday.

The bank attracted orders worth 220 billion won during the book building process for its 150 billion won offering of senior ESG bonds with a three-year maturity. Meritz Securities acted as a bookrunner.

Sustainalytics served as an evaluator for the social bond. The spread was guided 15 bp below and above an average interest rate set by three private bond rating agencies.

Jeju Bank had raised between 20 billion won and 50 billion won through its bond offerings ever since the book building system was implemented in 2012.

Despite worries over the large amount, Jeju Bank attracted sufficient orders from 11 institutional investors in the book building process, pricing the offering at 6 bp over the average interest rate.

Three domestic private bond rating agencies set an interest rate of Jeju Bank’s corporate bond with a three-year maturity at 1.409% as of April 12, according to the bank’s registration statement. The bank is expected to sell its ESG bond at around 1.5%.

It is notable that pension funds led the book building process, which is rare for a local bank's bond offering. Pension schemes made orders totaling 70 billion won, accounting for around half the total amount. All pension funds placed their orders in the bottom end of the spread.

The spread between the bank’s three-year bond and three-year Treasuries has been maintained at 27bp, which is lower than 31bp when the lender sold its bonds in 2018. (Reporting by Jun-woo Nam)