Korea Development Bank Signs 480 Billion KRW Green Loan Agreement with Hyundai Heavy Industries

Joint Collaboration with Domestic and International Financial Institutions Including HSBC, ICBC, and KDB Capital
A Turning Point to Revitalize the Shipbuilding Industry Amid the COVID-19 Crisis
Expectations for Job Creation and Regional Economic Revitalization Through Advancement of Eco-Friendly Ship Technology

Woo Geon-gun, CEO of Industrial and Commercial Bank of China, Howard Kim, Head of Global Banking at HSBC, Cho Young-chul, Vice President of Hyundai Heavy Industries, Choi Dae-hyun, Deputy Governor of Korea Development Bank, and Kim Geon-yeol, Vice President of KDB Capital (from left), are posing for a commemorative photo after signing a green loan agreement on the 29th at the IR Center of Korea Development Bank headquarters in Yeouido, Seoul.

[Asia Economy Reporter Kangwook Cho] KDB Industrial Bank announced on the 29th that it has signed a Green Loan contract worth 480 billion KRW (350 billion KRW from KDB) with Hyundai Heavy Industries in cooperation with domestic and international financial institutions such as HSBC Bank, Industrial and Commercial Bank of China, and KDB Capital.

A Green Loan is a loan system where the use of the loan is restricted to eco-friendly sectors such as eco-friendly ships, renewable energy, and high-efficiency energy, and requires meeting conditions such as obtaining eco-friendly certification from global certification bodies.

With environmental regulations such as IMO2020 (International Maritime Organization) being strengthened recently and the demand for eco-friendly energy sources increasing worldwide, the shipbuilding industry hopes to overcome the order drought by securing orders for eco-friendly and high-efficiency ships.

Earlier, Hyundai Heavy Industries was recognized for its continuous investment and research and development efforts in eco-friendly sectors and received eco-friendly certification from the global certification body Vigeo Eiris last month, the first in the global shipbuilding industry.

Amid delayed recovery in the shipbuilding industry due to COVID-19 and falling oil prices, this Green Loan is evaluated as a case where KDB collaborated with domestic and international financial institutions to provide financing for future businesses. Hyundai Heavy Industries plans to use the funds raised through this Green Loan for developing ship technologies using eco-friendly fuels such as LNG.

Choi Dae-hyun, Vice President of KDB Industrial Bank, said, "This Green Loan will serve as an opportunity to revitalize the stagnant shipbuilding industry by providing financing through joint cooperation of domestic and international financial institutions amid increased market volatility caused by COVID-19," adding, "Furthermore, it is expected to contribute to job creation and regional economic revitalization through the advancement of eco-friendly ship technology."

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