Woori Card's Strategic ESG Bond Issuance

Woori Card has successfully issued $400 million worth of environmental, social, and governance (ESG) bonds in the form of overseas asset-backed securities (ABS). This significant financial move, announced on December 3, was exclusively invested in by the French major bank Societe Generale. This achievement underscores Woori Card's ability to secure large-scale funding amidst the expanding volatility of the global financial market.

The ABS issued by Woori Card has an average maturity of three years. To mitigate risks associated with exchange rate and interest rate fluctuations, a currency interest rate swap was concluded with Societe Generale's Seoul branch. This strategic decision ensures that Woori Card can maintain funding stability by securing long-term, low-interest funds.

ABS are financial instruments backed by a pool of assets, such as loans, leases, credit card debt, or receivables. They allow issuers to raise funds by selling these securities to investors, who receive payments derived from the underlying assets. This helps issuers secure liquidity and manage financial stability. In this case, the ABS issued by Woori Card are based on the Asset Securitization Act, using receivables from credit card usage and cash service transactions as collateral.

A Woori Card representative explained, "By issuing this ABS, we secured a large amount of long-term, low-interest funds, thereby enhancing funding stability." The representative further emphasized, "The high external credibility and excellent asset soundness of Woori Financial Group and Woori Card were crucial."

Including this recent funding, the total amount of ESG bonds issued by Woori Card this year amounts to 1.55 trillion won. The capital raised from these ESG bonds is being utilized to create social value, such as advancing the payment settlement period for small and medium-sized merchants. This initiative underscores Woori Card's commitment to supporting SMEs, which are vital for economic growth and stability, especially in the context of ESG initiatives.

A company official stated, "Through this overseas ABS issuance, we not only reduced procurement costs but also reduced reliance on short-term funding," and added, "We will continue to diversify our funding portfolio to enhance financial stability."

The involvement of Societe Generale, a leading French multinational investment bank and financial services company, as the sole investor in this ABS issuance underscores the credibility and attractiveness of Woori Card's offering. This partnership highlights the confidence that international investors have in Woori Card's financial stability and asset soundness.