Hanwha Successfully Secures PF Financing for Modernization of Daejeon Sewage Treatment Plant Facilities

[Asia Economy Reporter Onyu Lim] Hanwha Corporation announced on the 20th that it has signed a project financing agreement for the Daejeon Sewage Treatment Plant Facility Modernization Private Investment Project with 10 financial institutions, including the Korea Development Bank.

The Daejeon Sewage Treatment Plant Facility Modernization Project is the first domestic project to relocate and modernize a large-scale aging sewage treatment plant. The project aims to improve river water quality by applying the latest sewage treatment methods and reduce odor by constructing facilities underground. Notably, this project involves more than 1 trillion KRW of private capital, making it the largest private investment project in the environmental sector to date.

Since signing the implementation agreement with Daejeon City in 2021, Hanwha Corporation's construction division has been conducting project financing (PF) to secure project funds.

A Hanwha Corporation official explained, "Due to the recent rapid rise in interest rates and liquidity deterioration, the PF market has tightened, making fund procurement difficult. However, based on financial institutions' trust in Hanwha's project execution capabilities and technical expertise, policy financial institutions such as the Korea Development Bank and Industrial Bank of Korea synergized their efforts, enabling successful large-scale PF procurement."

With this financing agreement, Hanwha Corporation has successfully completed its first ESG project financing agreement since the launch of the merged corporation, and has been recognized for its ability to secure funding for future investment projects, including sewage treatment and wind power, as well as other eco-friendly businesses.

At the signing ceremony held at The Plaza Hotel in Jung-gu, Seoul, Kim Wooseok, Chief Financial Officer of Hanwha Corporation, stated, “Based on a stable financial structure and accumulated project capabilities in construction, Hanwha Corporation’s construction division will strengthen its capabilities as a ‘Green Infrastructure Developer’ by cooperating with various financial institutions to stably procure project financing.”

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