SK E&S raises $300 million through 'Green Loan'... Accelerating ESG Management

[Asia Economy Reporter Hwang Yoon-joo] SK E&S, which is expanding its business areas centered on future eco-friendly energy such as hydrogen and renewable energy, has recently successfully raised funds through a green loan, accelerating investment in new growth businesses.

On the 4th, SK E&S announced that it will raise $300 million through a green loan contract with the 'Overseas M&A and Investment Joint Support Council (Council),' composed of the Korea Development Bank, Export-Import Bank of Korea, and NH Nonghyup Bank. The funds secured through the green loan will be used to expand the hydrogen business, including equity investment in the U.S. company Plug Power.

A Green Loan refers to a loan with investment purposes limited to environmentally friendly business sectors such as renewable energy, energy efficiency, and hydrogen-related infrastructure. It is difficult to pass the certification procedures of financial institutions and requires detailed fund management, but it has recently attracted attention as a financing trend among global energy companies and financial institutions because it can contribute to solving environmental issues in the long term.

Earlier in January, SK E&S and SK Inc. invested a total of 1.85 trillion KRW (1.6 billion USD) in Plug Power, a global leader in the hydrogen business, becoming the largest shareholder with a 10% stake. Through this green loan agreement, SK E&S was able to timely raise approximately $300 million (about 330 billion KRW), securing stable funding for the Plug Power investment.

An official from the Korea Development Bank stated, "The Overseas M&A and Investment Joint Support Council selectively supports green finance only for eco-friendly industries deemed nationally important. Through this, we plan to induce green investments by domestic companies and actively respond to the government's 'Low Carbon Power Generation Strategy'."

An SK E&S official said, "Successfully raising a green loan from major policy banks is the official recognition of the future growth potential and eco-friendliness of SK E&S's core businesses. Going forward, we will leap forward as a global major eco-friendly energy company leading ESG through a portfolio centered on hydrogen and renewable energy."

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