Gwangju Bank recently launched a new loan product called "RE100 SOLAR-LOAN" for solar power generation businesses that have signed power supply contracts with private renewable energy electricity suppliers for direct power trading contracts. Photo by Gwangju Bank
Gwangju Bank (President Ko Byungil) announced on the 7th that it has launched a new loan product, ‘RE100 SOLAR-LOAN’, designed for solar power operators who have signed power supply contracts with private renewable energy electricity suppliers for direct power trading contracts.
As part of its ongoing efforts to achieve ‘RE100 by 2035’, Gwangju Bank signed a direct power trading contract with SK Innovation E&S in November last year. With the launch of this loan product, the bank aims to further strengthen its ESG management in line with the expansion of the private RE100 market.
Eligible applicants are solar power operators who have signed power supply contracts with renewable energy electricity suppliers designated by Gwangju Bank. Loans are provided on the condition of offering solar power facilities and land as collateral, with the assignment of claims such as electricity sales proceeds as a requirement.
The loan limit is up to 80% of the total required funds, and the interest rate is calculated by reflecting the transaction price (KRW/kWh) of the power supply contract and annual cash flow. The loan period is up to 20 years within the scope of the power supply contract, and repayment is made in equal monthly installments of principal (or principal and interest).
Preferential interest rates of up to 1.30% per annum can be provided for each customer. The preferential rate conditions include: ▲ up to 0.60% per annum based on credit rating ▲ up to 0.40% per annum based on collateral ratio ▲ up to 0.30% per annum for additional transactions and branch manager’s discretion. The final loan interest rate ranges from a minimum of 4.03% to a maximum of 9.92% per annum.
Park Moonsu, Head of Data Product Strategy at Gwangju Bank, said, "We have launched this loan product to support the production and supply of renewable energy in the Honam region in response to the expansion of the RE100 electricity market and direct power trading contracts. We will continue to provide financial services that empower our customers, tailored to the needs of regional development and solar power operators."
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