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Guideline on Issue of SRI Bonds
The issuance structure of Socially Responsible Investment (SRI) bonds is in the following diagram. SRI bonds are the same as other bonds from a financial perspective, such as bond issuance and repayment of principal. One of the differences is that, unlike other bonds, SRI bonds formulate an SRI bond framework, which an external institution will review to examine if the framework is aligned with the principles. Another difference is that, once the bonds are issued, SRI bonds are required to perform regular reporting at least once a year as to the current status of proceeds used and environmental and social improvements they have achieved.
SRI Bond Management Framework
This framework addresses: 1) Use of Proceeds, 2) Process for Project Evaluation & Selection, 3) Management of Proceeds, and 4) Reporting.
External Review
This is to ensure that the SRI bond management framework is aligned with the applicable principles or standards such as the GBP, CBS, SBP, Sustainability Bond Guidelines, etc.
Reporting
Regular reports covering the use of proceeds and the environmental & social impact of bond issuance.
Structure of a SRI Bond Issue

<Comparison between Issue of SRI bonds and Ordinary (Non-SRI) Bonds>

Process to register bonds in the SRI dedicated segment of the KRX
Check if the following eligibility criteria set by the KRX are met:
※ Criteria to be met for debt securities to be included in the SRI dedicated segment of the KRX (Article 4 of「Guidelines for operation of Segment dedicated to SRI Bonds」)
  1. 1. The debt securities must be listed on the securities market operated by the KRX.
  2. 2. The issuance of the debt securities must be in line with any of the following SRI bond principles.
    1. (1) ICMA 「Green Bond Principles」, ICMA 「Social Bond Principles」, ICMA「Sustainability Bond Guidelines」
    2. (2) CBI 「Climate Bond Standard」
    3. (3) FSC & ME 「Korea - Green Bond Guidelines」
    4. (4) Other principles acceptable to the KRX
Submit application forms and other required documents
KRX reviews the eligibility and decides whether to accept the application or not
KRX notifies the decision
Examples of a Bond Issue
Checklist on a Bond Issue : download ( )