June 28, 2024
AJ Networks is Accelerating Financial Cost Reduction with ESG bond Issuance
- Secured the highest ESG rating of G1
- Looking forward to the dual advantages of reducing financing costs and enhancing ESG management
AJ Networks (095570) announced that it has issued KRW 30 billion worth of green bonds.
This follows the company's achievement of the highest ESG rating of G1 (Green1) from Korea Ratings, recognizing its strong ESG management practices and contributions to environmental and social causes. With a maturity of three years and a fixed interest rate of 5.20%, these green bonds are expected to not only extend the company's debt maturity but also significantly reduce its financing costs.
Since last year, AJ Networks has been actively focusing on increasing its borrowing from banks to enhance financial stability and lower financing costs. In February, the company successfully raised KRW 100 billion in a public bond offering, securing a favorable interest rate of around 5%. Subsequent private bond issuances targeting high-yield funds have further reduced borrowing costs, with recent new borrowings achieving interest rates below 5%. The latest green bond issuance is expected to accelerate these cost-reduction efforts.
"We are honored to issue our second green bond underwritten by the Industrial Bank of Korea, following the successful issuance in 2022," said an official at AJ Networks. "Our pallet rental business has contributed to reducing waste and promoting resource circulation through reuse, which has been recognized for its environmental impact." The official added, "We will continue to pursue ESG management centered on sustainable environments, shared growth, and building trust as a reliable company."
AJ Networks is planning to issue additional public bonds in July to further reduce financing costs. The company's strong financial health, achieved through restructuring efforts such as the sale of subsidiaries over the past few years, combined with a robust operating profit margin despite economic downturns, makes it an attractive investment option. The company expects to see a significant acceleration in cost reduction in the second half of the year if this issuance is successful.
June 28, 2024
AJ Networks is Accelerating Financial Cost Reduction with ESG bond Issuance
- Secured the highest ESG rating of G1
- Looking forward to the dual advantages of reducing financing costs and enhancing ESG management
AJ Networks (095570) announced that it has issued KRW 30 billion worth of green bonds.
This follows the company's achievement of the highest ESG rating of G1 (Green1) from Korea Ratings, recognizing its strong ESG management practices and contributions to environmental and social causes. With a maturity of three years and a fixed interest rate of 5.20%, these green bonds are expected to not only extend the company's debt maturity but also significantly reduce its financing costs.
Since last year, AJ Networks has been actively focusing on increasing its borrowing from banks to enhance financial stability and lower financing costs. In February, the company successfully raised KRW 100 billion in a public bond offering, securing a favorable interest rate of around 5%. Subsequent private bond issuances targeting high-yield funds have further reduced borrowing costs, with recent new borrowings achieving interest rates below 5%. The latest green bond issuance is expected to accelerate these cost-reduction efforts.
"We are honored to issue our second green bond underwritten by the Industrial Bank of Korea, following the successful issuance in 2022," said an official at AJ Networks. "Our pallet rental business has contributed to reducing waste and promoting resource circulation through reuse, which has been recognized for its environmental impact." The official added, "We will continue to pursue ESG management centered on sustainable environments, shared growth, and building trust as a reliable company."
AJ Networks is planning to issue additional public bonds in July to further reduce financing costs. The company's strong financial health, achieved through restructuring efforts such as the sale of subsidiaries over the past few years, combined with a robust operating profit margin despite economic downturns, makes it an attractive investment option. The company expects to see a significant acceleration in cost reduction in the second half of the year if this issuance is successful.