Korea Power Corp. said Wednesday that it has become the first South Korean energy company to issue environmental, social and governance bonds worth 200 billion won ($176 million) for two consecutive years.

According to the state-run utility, the bonds comprise two-year bonds worth 30 billion won, three-year bonds worth 100 billion won and five-year bonds worth 70 billion won.

“Kepco issued the ESG bonds at the lowest interest rate out of all ESG bonds that have been issued by public energy companies in Korea. Also, the profit rate of the ESG bonds are 2.65 basis points lower on average than that of the bonds Kepco normally issues,” a company official said.

Funds raised by the ESG bonds will be used for various purposes including Kepco’s domestic and overseas renewable energy projects, grid infrastructure expansion and job creation.

Kepco has been making efforts to shore up investments through eco-friendly means, issuing green bonds worth $500 million in the first half of this year.

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