Shinhan Financial Group Arranges 50 Billion KRW Financing for Watari BESS Project in Japan

Shinhan Bank, SBJ Bank, and Shinhan Asset Management Join the Project
First Korean Financial Institutions to Enter the Japanese Battery Energy Storage System Market

Shinhan Financial Group announced on April 22 that Shinhan Bank, SBJ Bank, and Shinhan Asset Management will participate as financial arrangers and major lenders in a battery energy storage system (BESS) development project in Japan, with a total financing of approximately 50 billion KRW.

Officials attending the financial closing ceremony held in Tokyo, Japan on the 11th are taking a commemorative photo. (From left) Hojoon Lee, Executive Director of Shinhan Asset Management; Taegun Park, Head of LS Electric Japan Corporation; Soonbak Kwon, Vice President of SBJ Bank; Taesu Hur, Auditor of KIND; Doohwan Bae, Head of Project Finance Department at Shinhan Bank; Jaehun Choi, Representative of Astronergy Japan. Provided by Shinhan Financial Group.

This project involves developing a BESS with a capacity of about 20 MW in the Watari area of Miyagi Prefecture, Japan. The total project cost is 4.9 billion yen (approximately 50 billion KRW). Shinhan Bank and SBJ Bank will jointly serve as financial arrangers, with SBJ Bank deciding to provide 1.225 billion yen (approximately 12.3 billion KRW) in loans. Shinhan Asset Management will act as the sponsor and lead the project.

This marks the first time a Korean financial institution has participated in the Japanese BESS market. Shinhan Bank and SBJ Bank proactively identified the Japanese government’s plan to expand BESS supply in order to achieve its goal of carbon neutrality by 2050, which led to their involvement as financial arrangers and lenders for this project.

In connection with this, on April 11, officials from Korea Overseas Infrastructure and Urban Development Corporation (KIND), LS Electric, Astronergy Japan, and Lee & Ko attended a ceremony in Tokyo, Japan to commemorate their participation in the project.

A Shinhan Financial Group official stated, "The BESS market is a new business model with high growth potential," adding, "Shinhan Financial Group will continue to contribute to the realization of a decarbonized society by conducting thorough analysis and providing financial support and cooperation for overseas infrastructure projects, including the renewable energy sector in Japan."