HF Issues Its First Green Bond Mortgage-Backed Securities (MBS)

- Striving to Expand Green Housing Finance and Support Housing Stability for Low-Income Households

Korea Housing Finance Corporation (HF, CEO Kim Kyung-Hwan) announced on the 23rd that it will issue KRW 560.5 billion worth of green bond mortgage-backed securities (MBS) to expand green housing finance and support housing stability for low-income households.

This issuance marks HF’s first mortgage-backed securities (MBS) that have obtained Green Bond* certification, with the underlying assets consisting entirely of the ‘Green Bogeumjari Loan,‘** an eco-friendly housing finance product.

  * Bonds issued to raise funds for environmentally friendly projects such as environmental protection, greenhouse gas reduction, and energy efficiency improvement

** A product that offers a preferential interest rate (0.1%p reduction) to borrowers receiving a Bogeumjari Loan secured by homes certified as green buildings or zero-energy buildings

Through the issuance of the green bond MBS, HF aims to achieve the dual policy goals of environmental protection and housing stability by providing stable long-term fixed-rate loans to low-income households living in eco-friendly homes. In addition, the bidding results reached 225% of the offering size, confirming solid market demand for the green bonds.

HF CEO Kim Kyung-Hwan stated, “This issuance is an important milestone that goes beyond simple fundraising to lead the transition toward green finance,“ adding, “HF will continue to actively support government policies and contribute to the promotion of an eco-friendly housing culture and green finance.“

Meanwhile, HF has been taking the lead in realizing environmental and social values through the expansion of sustainable finance, including issuing all mortgage-backed securities (MBS) in the form of ESG (Environmental, Social, Governance) bonds since March 2019.