Korea Housing-Finance Corporation (HF) announced on June 12 that it held a business guarantee briefing jointly with the Korea Housing Association at the Construction Hall in Gangnam-gu of Seoul.
HF Finance Corporation Business Guarantee supports smooth financing by guaranteeing the repayment of loans when housing developers borrow funds from financial institutions for the construction of houses for sale or rental purposes.
At this briefing session attended by representatives from construction companies, financial institutions, and project financing companies, the event included explanations of the construction contractor guarantee system, guidance on improvements to support systems for the construction industry in response to the situation in the Middle East, information on products such as Construction Cost Plus Project Financing (PF) Guarantee, guidance on usage procedures and precautions, and a Q&A session and consultation.
HF holds a business guarantee briefing at the Construction Hall in Gangnam-gu, Seoul, targeting project financing stakeholders from construction companies and financial institutions on June 12.
Construction Cost Plus Project Financing (PF) Guarantee is a guarantee provided exclusively to new PF projects and approved construction sites that require additional funds for construction costs despite having sufficient business viability.
“In a situation where external uncertainties are on the rise, it is crucial for HF to support the stable execution of projects in the construction industry,” said Yeo Sang-jun, head of the Fund Business Division at HF.
“We will continue to actively reflect feedback from those in the field and consistently supply guarantee products that provide practical assistance.”
Receiving Highest Grade in ESG Management Assessment
HF announced on June 16 that it received the highest grade of “AA” in a management assessment conducted by Sustinvest, a recognized and authoritative institution in the environmental, social, and governance (ESG) evaluation field in Korea.
This assessment is highly significant as it objectively confirms that HF’s ESG management system is at the highest level through an assessment by an external institution with established credibility and expertise.
As a result of the assessment, HF recorded consistently high scores across all categories.
It was recognized for achievements in the following areas — the expansion of eco-friendly housing finance, including the application of preferential interest rates for Bogeumjari Loans to green-building certified homes in the environmental sector; the practice of inclusive finance to stabilize housing for low-income families and efforts toward mutual growth with local communities in the social sector; and transparency in decision-making and efforts toward responsible management in the governance sector.
“Through this evaluation, the level of HF’s ESG management and execution capabilities have been externally recognized,” said Kim Kyung-hwan, president of HF. “HF will pump up its efforts to create tangible sustainable management results that the general public can experience.”
Issuance of Korea’s First GBP Covered Bond
HF announced on June 17 that it successfully issued GBP covered bonds worth 500 million pounds (approximately 1 trillion won) to strengthen its ESG management and realize social value.
This issuance is significant as it marred the first GBP covered bond issued by a Korean institution and is the only one issued in the form of a social bond in the global GBP covered bond market since January 2022.
The issued bond is a 3-year floating-rate bond, with an issuance rate of 3.953%, calculated by adding 0.510 percentage points to the UK risk-free benchmark rate (SONIA).
The investor composition includes a diverse range of global investors with banks accounting for 43%, asset management companies 38%, central banks and international organizations 10%, and others (insurers and pension funds) 9%.
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