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Bond spotlight

South Korea deepens green bond push: KORELE and EIBKOR

Written by Jeannette Leong

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South Korea’s quasi-sovereign issuers are returning to global debt markets with new labelled bonds, following Korea East-West Power’s climate transition bond earlier in July. KEPCO (KORELE) and KEXIM (EIBKOR) are both issuing USD bonds under updated frameworks aligned with current international standards, but with different use-of-proceeds profiles and strategic aims.

KEPCO is marketing a roughly USD700 million dual-tranche green bond, with proceeds earmarked for renewable energy, clean transport and energy efficiency under its October 2025 sustainable finance framework. The framework aligns with the 2025 ICMA Green and Social Bond Principles and the 2021 Sustainability Bond Guidelines, while adding explicit exclusions for fossil-fuel-linked infrastructure and nuclear energy.

KEXIM is bringing a benchmark two-tranche USD deal with a three-year green bond and a five-year conventional bond, using the green tranche for eligible projects and the other for general funding needs. Its June 2026 framework broadens eligible categories and adds green-enabling activities across batteries, EVs, grids, hydrogen and selected ICT projects, making the cluster of Korean issuance a useful test of investor appetite, pricing differentiation and whether updated labels support any greenium.

About the author

Jeannette Leong

Jeannette Leong

Research Associate, APAC

Based in Singapore, Jeannette focuses on credit research and analysis across the Asia-Pacific region. She brings 19 years of fixed income investing experience in emerging markets, Asian fixed income and China’s onshore bond market.

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