NongHyup Financial Launches Second Productive Finance Project: "Climate Package Finance"

NongHyup Financial Group announced on the 23rd that it will launch the "Climate Package Finance" as its second strategic project for productive finance, in response to the government's and public sector's policy direction to expand productive finance.

The "Climate Package Finance" is a core pillar of NongHyup Financial Group's "NH Win-Win Growth Project," which aims to provide a total of 108 trillion won over the next five years. Following the first project, NH Investment & Securities' pursuit of IMA approval, this is a representative follow-up initiative for productive finance. This project is a climate finance model that organically links loans (transition finance) and financial support (preferential interest rates) based on carbon emissions trading. It will be jointly operated by NongHyup Bank and NH Investment & Securities.

On the 24th, NH Investment & Securities became the first domestic securities company to launch a "carbon emissions trading consignment service," establishing an institutional foundation for the activation of the carbon emissions trading market. Based on this, a model has been established in which companies that sign a consignment trading contract for carbon emission rights with NH Investment & Securities and receive facility loans (transition finance) from NH NongHyup Bank are provided with tailored solutions such as preferential interest rates. NH Investment & Securities is building a new financial structure that converts company-held carbon emission rights into collateralized working capital and plans to institutionalize this by pursuing designation as an "innovative financial service" if necessary.

NongHyup Financial Group plans to continue developing and spreading strategic content that reflects its unique identity and expertise in order to further advance productive finance.

Chanwoo Lee, Chairman of NongHyup Financial Group (fifth from the right in the front row), and executives and employees of NongHyup Financial Group pledge to supply 108 trillion won to productive and inclusive finance over the next five years to revitalize productive finance. NongHyup Financial Group

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Chanwoo Lee, Chairman of NongHyup Financial Group, emphasized, "This financial package, centered on carbon emissions trading, is a pioneering attempt that presents a new paradigm for climate finance in Korea. We will solidify a multi-layered cooperation system among corporations, banks, and securities firms to alleviate the burden of transition finance in the industrial sector and further expand the horizon of productive finance."

Kang Taeyoung, President of NH NongHyup Bank, stated, "Through transition finance and preferential interest rate support, we will help companies pursue eco-friendly investments with a more rational and efficient cost structure. We will continue to develop financial support measures that can be immediately felt on the ground to enhance the effectiveness of productive finance."

Yoon Byungwoon, CEO of NH Investment & Securities, commented, "The launch of the carbon emissions trading consignment service is a key turning point for the activation of the emissions trading market and the establishment of important infrastructure. We will expand company-held emission rights as a strategic asset class and further strengthen the productive finance ecosystem through close partnerships with banks."

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