Bank's first large-scale financing deal in the renewable energy sector
NH NongHyup Bank said it will sign a financial agreement Monday as the lead arranger for a 194 billion won ($126 million) battery energy storage system project in Gwangyang, South Jeolla Province.
The project, led by Gwangyang Hwanggeumm Energy Storage Co., involves constructing and operating a long-duration energy storage facility with a capacity of 99.75 megawatts and 750 megawatt-hours in Gwangyang. The project was selected through the first central contract market competitive bidding process last year and is set to break ground in April 2026, with completion and commercial operations targeted for March 2027.
As lead arranger, NH NongHyup Bank oversaw the entire financing process alongside NH NongHyup Life Insurance and Kyobo Securities, including financial structure design, syndication formation and coordination, and project feasibility and risk analysis. The bank said the deal marks its first large-scale financing arrangement in the renewable energy sector.
NH Daehanminguk Sangsaeng Seongjang Fund No. 1 — a fund jointly established in May by NongHyup affiliates — is also participating as a lender, which the bank said demonstrates an integrated financial solution at the NongHyup Financial Group level. NongHyup Financial has said it plans to make equity investments in advanced strategic industry infrastructure projects through the fund and to commit capital through the project financing stage.
NH NongHyup Bank has been steadily expanding its financing and investment across a range of infrastructure assets. It has signed agreements totaling 1.05 trillion won in the renewable energy sector and currently holds an outstanding balance of 470 billion won. Notably, 997.9 billion won — the bulk of total commitments — has been concentrated since 2020, reflecting sharp growth. In April, the bank also joined the Sinan Ui offshore wind power project, the first investment under National Growth Fund No. 1, as part of its push to expand community-rooted productive finance.
"This project is a prime example of productive finance that combines NH NongHyup Bank's financing capabilities with NongHyup Financial Group's investment capacity," a bank official said. "We will continue to expand financial support for key national infrastructure sectors such as power and energy, contribute to balanced regional development, and lead the way in productive finance."
won@heraldcorp.com
