Export-Import Bank and CGIF Jointly Guarantee Green Bond Issued by Hanwha Solutions

Sooeun-CGIF Shares 50% of Recovery Risk for Overseas Investors with Joint Guarantee

[Asia Economy Reporter Park Sun-mi] The Export-Import Bank of Korea announced on the 15th that it will jointly guarantee with the Credit Guarantee and Investment Facility (CGIF) the repayment risk of overseas investors by sharing 50% each for the 1 billion yuan (approximately 171.4 billion KRW) green bond to be issued by Hanwha Solutions.

Green bonds are special purpose bonds issued to raise funds for eco-friendly and renewable energy projects aimed at addressing climate change. This is the first time Hanwha Solutions is issuing green bonds. Hanwha Solutions holds global competitiveness ranked 7th worldwide last year in terms of solar module production capacity within its solar business division.

The funds raised this time will be used to strengthen ESG (Environmental, Social, and Governance) management, increase capital for local subsidiaries in China producing solar cells and modules, and refinance existing loans. A representative from the Export-Import Bank of Korea stated, "The cooperation model between the two institutions will be evaluated as a useful model that our companies can utilize to raise funds through bond issuance within the Asian region in the future," adding, "We will continue to provide various financial solutions to our companies engaged in renewable energy industries such as solar and wind power by leveraging the Export-Import Bank's extensive global network, including CGIF."

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