K&L Gates Straits Law Advises South Korea’s KB Kookmin Bank on US$300 Million Social Bond involving the IFC and Indonesia’s KB Bukopin

1 September 2022

Singapore K&L Gates Straits Law LLC, the Singapore office of global law firm K&L Gates, has advised the Singapore branch of South Korea’s largest commercial bank, KB Kookmin Bank Co., Ltd., on the on-lending aspects of a US$300 million senior debt facility involving its Indonesian subsidiary, PT Bank KB Bukopin, and World Bank Group member International Finance Corporation (IFC). 

The IFC’s loan will be structured as a first-of-its-kind social bond, solely dedicated to supporting socially-oriented financings in Indonesia in line with the eligibility criteria set under the International Capital Market Association’s Social Bond Principles.

Projects partner and ESG practitioner Marius Toime (Singapore) stated: “We congratulate the parties on this pioneering transaction, which will not only accelerate Indonesia’s post-Covid-19 recovery but also support environmental and social channels such as micro, small and medium enterprises, affordable housing, health care, education and infrastructure. It is testament to the strong relationship between South Korea and Indonesia, and growing international confidence in Indonesia’s banking sector.”

The deal team was led by Toime and the client relationship partner Henry Kim (Singapore), with support from finance partners Neil Campbell (Tokyo) and Richard Hayes (Sydney) and special counsel Harsharan Gill (Sydney).  Additional support was provided by tax partner Roberta Chang (Shanghai), corporate of counsel Ahmad Khalis (Singapore), and associates Anita Zhou (Shanghai), Nandana Marur (Singapore), and Jean Gan (Singapore).