Industrial Bank Leads Global Green Finance... Completed Financing Arrangement of About KRW 6 Trillion for 74 Projects

Since 2011, Financial Arrangements Completed for 74 Renewable Energy Projects Worth Approximately 6.4 Trillion KRW
"Accelerating Support for Renewable Energy in Line with Government's Expansion Policy"

[Asia Economy Reporter Park Sun-mi] Korea Development Bank (KDB) is establishing itself as a global project financing (PF) institution for renewable energy projects by achieving success in arranging financing for renewable energy businesses.

On the 1st, KDB announced that despite the challenging business environment caused by COVID-19, five projects in which KDB participated as a financial arranger last year were selected as ‘Deals of the Year’ by Project Finance International (PFI), a global PF specialized journal. Among these, the UK Dogger Bank offshore wind project and Taiwan Changfang offshore wind project, both arranged by KDB, were awarded PFI’s ‘Global Green Deal of the Year’ and ‘Asia-Pacific Renewable Deal of the Year,’ respectively.

Since 2011, KDB has completed financial arrangements worth approximately 6.4 trillion KRW for 74 renewable energy projects including solar and wind power both domestically and internationally, leading to the expansion of about 14 gigawatts (GW) of power generation capacity. From an environmental perspective, this capacity can reduce carbon emissions by approximately 750 million tons, which is equivalent to planting about 5.4 billion pine trees.

KDB stated that its overseas renewable energy PF capabilities are also contributing to the overseas expansion of Korean companies such as Korea Electric Power Corporation (KEPCO), Hanwha, and Samsung C&T in solar and wind power businesses.

Meanwhile, the government announced in last month’s 9th Basic Plan for Electricity Supply and Demand that it plans to newly expand renewable energy capacity by 62.3 GW between 2020 and 2034, and to achieve this target, a large-scale investment of approximately 94 trillion KRW (assuming 1.5 billion KRW per MW) will be required by 2034.

Accordingly, KDB plans to intensify its support for renewable energy in line with the government’s renewable energy expansion policy by concentrating bank resources on green finance, including the establishment of a new policy and green planning division this year. Additionally, by introducing public offering funds and community participation structures for financing renewable energy projects, KDB aims to enable the public to share in the benefits of renewable energy, which is expected to grow as a major industry in the future.

This content was produced with the assistance of AI translation services.