IBK Bank has participated in the creation of Climate Technology Funds 1 and 2, totaling 925.4 billion won. While maintaining the foundation of fundraising through ESG bond issuance, the bank is expanding its small and medium-sized enterprise policy finance to climate and transition finance.
According to the financial industry on the 1st, the cumulative amount of Climate Technology Funds 1 and 2, in which IBK Bank participated, amounts to 925.4 billion won.
Climate Technology Funds are policy finance funds designed to support companies in the climate technology field such as greenhouse gas reduction, energy conversion, eco-friendly materials, and resource circulation. As demands for carbon emission reduction and ESG compliance increase in the global supply chain, small and medium-sized enterprises also face the need for low-carbon process conversion and investment in eco-friendly facilities.
IBK Bank has been fulfilling its role in policy finance mainly by providing working capital and facility funds to small and medium-sized enterprises.
The bank is also maintaining a foundation for fundraising. Last year, IBK Bank issued 7.25 trillion won worth of won-denominated ESG bonds, accounting for 61.3% of the total won-denominated ESG bond issuance by banks. For 5 consecutive years, IBK Bank has achieved the highest proportion of ESG bond issuance among domestic banks.
In the international financial market, the bank has continued to raise ESG bonds. Following the issuance of a 700 million Australian dollar social bond in February last year, the bank issued a 1 billion dollar social bond to support small and medium-sized enterprises in June.
The expansion of IBK Bank's climate finance is closely related to the transformation of its role in policy finance. Export-oriented small and medium-sized enterprises are facing new cost burdens such as carbon border adjustment mechanisms, global supply chain inspections, and ESG evaluations by large companies. Financial support is also moving beyond short-term liquidity supply to support equipment conversion, energy efficiency, and investment in eco-friendly technologies.
IBK Bank is promoting the enhancement of small and medium-sized enterprise ESG capabilities and the expansion of eco-friendly business development and investment. The creation of Climate Technology Funds and the performance of ESG bond issuance demonstrate that such strategies are being translated into actual fundraising and supply systems.
In the financial industry, the expansion of IBK Bank's climate finance is seen as an opportunity to broaden the scope of small and medium-sized enterprise policy finance. It is analyzed that the supply of venture capital for climate technology companies and support for transition finance can enhance the supply chain resilience and export competitiveness of small and medium-sized enterprises.
A financial industry official stated, "Climate finance is no longer just a means for large financial institutions to manage their ESG image," adding, "As the practical demand for funds for small and medium-sized enterprises to respond to carbon reduction and supply chain regulations increases, the role of policy finance institutions must inevitably shift towards transition finance."