Hanwha Solutions will issue its first overseas green bonds worth 1 billion yuan ($152.9 million) starting from Monday, the company said.

The yuan-denominated bonds, with a three-year maturity, carries a rate of 3 percent and will be guaranteed 50 percent each by the state-run Export-Import Bank of Korea and Credit Guarantee and Investment Facility, a trust fund of the Asian Development Bank. When swapped to the Korean won, the green bonds will offer an annual interest rate of approximately 0.7 percent. The bonds received an AA rating from S&P.

“To issue the green bonds, Hanwha Solutions last month won a second-party opinion by Sustainalytics attesting that the company meets a certain level in environmental, social and governance efforts,” a Hanwha Solutions official said, adding that the green bonds are the company’s first overseas debt issue. Sustainalytics is a Dutch ESG research and ratings firm.

Green bonds are those specifically earmarked to raise money for climate and environmental projects and have to satisfy certain requirements to be issued.

“Starting with the successful issuance of the green bonds, Hanwha Solutions will continue its ‘green financing’ and expand eco-friendly projects in Europe and the US,” Hanwha Solutions Chief Financial Officer Shin Yong-in said. 

By Kim Byung-wook (kbw@heraldcorp.com)