Shinhan Bank Invests 330 Billion Won in Global Impact Fund... First in Korean Financial Sector

Shinhan Bank announced on September 24 that it has participated as a senior lender in the 'Hardest-to-Reach Initiative (H2R),' an Africa-focused green energy fund worth 246.5 million dollars (approximately 330 billion won).

The 'H2R Fund,' established by global impact investment firm Acumen, aims to address energy poverty and energy blind spots that traditional finance has failed to reach by combining private, public, and philanthropic capital. Shinhan Bank is the first Korean financial institution to participate in a global impact fund.

The H2R Fund will be operated mainly through a 'scaling support program' based on social performance-linked loans and 'seed capital provision' tailored for startups entering vulnerable markets. Alongside Shinhan Bank, the Green Climate Fund (GCF), International Finance Corporation (IFC), British International Investment (BII), Nordic Development Fund (NDF), and Soros Economic Development Fund (SEDF) have also joined the initiative.

This project is expected to provide new electricity access to approximately 70 million people across 17 African countries, where electrification rates are among the lowest in the world. Of these, about 50 million people will be using electricity for the first time in their lives.

With this participation, Shinhan Bank plans to simultaneously pursue the achievement of the Sustainable Development Goals (SDGs) and expand its coverage in the African market. In addition, the bank intends to extend Shinhan Financial Group's carbon neutrality strategy, 'Zero Carbon Drive,' onto the international stage, strengthening its future growth foundation by linking this with its EMEA (Europe, Middle East, and Africa) hub strategy centered in London.

Suh Seunghyun, Head of Global Business Group, stated, "It is meaningful to contribute to supplying capital to the most challenging markets and expanding clean energy. This participation not only demonstrates Shinhan Bank's commitment to ESG practices but also marks an important starting point for supporting Africa's sustainable development."