5th consecutive year issuing K-green bond; cumulative total reaches W750b
Shinhan Bank has issued a 150 billion won ($113 million) Korean green bond to channel funds into eco-friendly projects, including the conversion of manufacturing facilities for high-efficiency solar cells and modules.
The bank issued the bond Tuesday under the Ministry of Climate, Environment and Energy's Korean green bond interest subsidy program. The issuance marks the fifth consecutive year Shinhan Bank has participated in the program since 2022, bringing its cumulative total to 750 billion won. The bank is also taking part in a separate interest subsidy program run by the Korea Environmental Industry and Technology Institute, which covers a portion of the interest costs associated with the bond issuance.
Korean green bonds are instruments designed to direct capital toward projects that meet the criteria of the K-Taxonomy, the country's official classification system for environmentally sustainable economic activities. Compliance is verified through pre-issuance reviews by external institutions and post-issuance reporting on how the proceeds are used.
The funds raised will go toward green projects that have passed a suitability review by an external assessor, including the conversion of production facilities to manufacture high-efficiency solar cells and modules — the core components of solar power generation. The initiative extends green finance beyond the expansion of renewable energy generation facilities to the manufacturing stage of key components.
Shinhan Bank said the funding aligns with the government's Korean Green Transformation strategy, announced Oct. 7, which aims to foster 10 major green industries — including solar and wind power — and achieve 100 gigawatts of renewable energy capacity by 2030.
The bank is also expanding its transition finance activities, which help carbon-intensive industries shift to lower-emission operations. Shinhan Financial Group became the first domestic financial institution to establish group-wide transition finance guidelines, doing so in May 2025. Last year, Shinhan Bank issued a 40 billion yen ($253 million) transition bond in the Japanese bond market and received a sustainable finance award from the Japan Research Institute of Climate Finance.
"We will support this green bond issuance so that it translates into corporate facility investment and growth in eco-friendly industries," a Shinhan Bank official said. "We will continue to supply the capital that green industries need in a timely manner and support the low-carbon transition of high-emission sectors."
forest@heraldcorp.com
