Shinhan Bank issues 150 billion won in green bonds; five-year total reaches 750 billion won

[Financial News] Shinhan Bank has issued Korean-style green bonds worth 150 billion won to support eco-friendly industries. The proceeds will be used, among other things, to convert production facilities to make high-efficiency solar panels. Shinhan Bank is the first commercial bank to issue such bonds for five consecutive years, with cumulative issuance reaching 750 billion won. 
According to financial industry sources on the 28th, Shinhan Bank issued Korean-style green bonds worth 150 billion won on the 27th after participating in the Korean Green Bond Issuance Interest Subsidy Program, overseen by the Ministry of Climate, Energy and Environment.
Korean-style green bonds are used to raise funds for projects that meet the Korean Green Taxonomy (K-Taxonomy), the criteria for determining whether economic activities are environmentally friendly. The process includes a review by an external body to assess eligibility before issuance and, after issuance, reporting on how the funds were used, to ensure that the proceeds go to eco-friendly projects.
The funds raised this time will be used for green projects, including the conversion of production facilities to make high-efficiency solar cells and modules, which an external review body has deemed eligible. The plan is to boost the competitiveness of Korea’s solar manufacturing industry by supporting the conversion of facilities to produce high-efficiency versions of cells and modules, key components needed for solar power generation. This is also in line with the government’s Korea Green Transformation (K-GX) strategy, announced on the 7th. The government is working to foster 10 green industries, including solar and wind power, and to deploy 100 GW of renewable energy by 2030. 
Shinhan Bank President Jeong Sang-hyeok has emphasized the role of finance in fostering eco-friendly industries and supporting companies’ transition to low-carbon operations. Accordingly, Shinhan Bank is providing funding for related industries by issuing green bonds and transition bonds.
Since becoming the first commercial bank in South Korea to issue Korean-style green bonds in 2022, Shinhan Bank has continued issuing them for five consecutive years through this year. It has also continued to participate in the Korea Environmental Industry & Technology Institute’s interest subsidy program, which covers part of the interest costs incurred when green bonds are issued.
A Shinhan Bank official said, "We will support this green bond issuance so that it can lead to corporate investment in facilities and growth in eco-friendly industries," adding, "Going forward, we will continue to provide funding for green industries in a timely manner and support the low-carbon transition of sectors with high carbon emissions, guided by the government’s and the group’s transition finance guidelines."
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