Shinhan Asset Management Launches Korea's First Policy-Type New Deal Infrastructure Fund

[Asia Economy Reporter Minji Lee] Shinhan Asset Management announced on the 23rd that it has launched the ‘Shinhan Green New Deal Energy Specialized Private Special Asset Investment Trust No. 3.’

KDB Industrial Bank and Korea Growth Investment Corporation announced a public notice on December 29 last year to select a delegated asset manager for the ‘2021 Policy-type New Deal Fund (Infrastructure),’ and Shinhan Asset Management was selected as the delegated asset manager on the 8th of last month, recognized for its existing capabilities in managing investments in eco-friendly power generation and renewable energy.

This fund, the first domestic policy-type New Deal infrastructure fund, completed raising 205 billion KRW in private capital composed of major banks and insurance companies, and combined with 36.9 billion KRW in investments from Industrial Bank and Growth Finance, it was established with a total size of 241.9 billion KRW.

The initial investment asset of the Shinhan Green New Deal No. 3 fund is a wind power generation complex with a total capacity of 60.2MW, consisting of 14 turbines of 4.3MW each, located in Seokpo-ri, Seokpo-myeon, Bonghwa-gun, Gyeongbuk Province. The fund’s investment scale amounts to approximately 80 billion KRW. This project has signed a 20-year REC (Renewable Energy Certificate) long-term supply contract with Korea Southern Power Co., Ltd., which not only hedges the volatility of electricity market prices but also is evaluated to have excellent stability of business profits by utilizing the outstanding wind resources of Bonghwa-gun, Gyeongbuk Province. Additionally, it is planned to proceed as a community participation-type renewable energy project where local residents participate and share the power generation profits.

The Infrastructure Operation Center of Shinhan Asset Management is currently investing in about 430MW of solar and renewable energy and 321MWh in solar-linked ESS projects through fund commitments exceeding 1.5 trillion KRW domestically. Shinhan Asset Management stated, “Starting with this policy-type New Deal infrastructure fund, we plan to launch a public New Deal infrastructure fund with tax benefits,” and added, “At the Shinhan Financial Group level, we plan to further expand renewable energy-related projects to promote ESG and sustainable management.”

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