Woori Card secured $400 million through environmental, social, and governance-linked asset-backed securities, with Societe Generale taking the entire offering. The South Korean credit card issuer structured the deal with a three-year average maturity, bringing its total ESG bond issuance this year to 1.55 trillion won ($1.2 billion).
The company arranged a currency interest rate swap with Societe Generale’s Seoul branch to hedge against foreign exchange and interest rate risks. The securities are backed by credit card receivables and cash service transactions under South Korea’s Asset Securitization Act.
While Woori Card officials touted the deal as a way to reduce procurement costs and short-term funding dependency, the transaction comes as Asian financial firms face increasing pressure to bolster their ESG credentials. The company says it will use proceeds to accelerate payment settlements for small and medium-sized merchants.
The deal represents a rare instance of a single international bank taking an entire Korean ABS offering, potentially signaling strong appetite for ESG-linked debt from the region despite global market volatility.
Woori Card plans to continue diversifying its funding sources to strengthen financial stability.
