Gwangju Bank and Hyundai Construction to Strengthen Financial Support for Renewable Energy

Business Agreement to Lead Greenhouse Gas Reduction
Expanding the Direct Power Purchase Agreement Market for Renewable Energy

Gwangju Bank has formed a "Green Alliance" with Hyundai Construction to expand the adoption of renewable energy and accelerate the implementation of RE100 (100% use of renewable energy).

On October 29, Gwangju Bank announced that it had signed a "business agreement for leading greenhouse gas reduction through ESG (Environmental, Social, and Governance) management and RE100 implementation" with Hyundai Construction. The signing ceremony was held at Hyundai Construction’s headquarters, attended by Jilseon Jung, Vice President of Gwangju Bank, Donghoon Lee, Executive Director of Hyundai Construction, and other officials.

The core of this agreement is to strengthen financial support for expanding the "direct power purchase agreement (direct PPA)" market for renewable energy. Gwangju Bank plans to enhance financial support for power generation companies that have signed direct PPAs with Hyundai Construction, thereby expanding the supply of renewable energy in the region and promoting eco-friendly transitions among companies.

Jilseon Jung, Vice President of Gwangju Bank (left in the photo), and Donghoon Lee, Executive Director of Hyundai Construction, are taking a commemorative photo. Gwangju Bank

With this agreement, the benefits of the "RE100 SOLAR-LOAN," a loan product for solar power generation companies launched by Gwangju Bank in April this year, will be expanded. The "RE100 SOLAR-LOAN" is available to solar power companies that have signed power supply contracts with renewable energy electricity suppliers designated by Gwangju Bank. The product provides loans of up to 80% of the required funds, secured by power generation facilities and land, and on the condition of assignment of power sales receivables. The loan term can be up to 20 years within the scope of the power supply contract.

If a solar power generation company that has signed a direct PPA with Hyundai Construction uses the "RE100 SOLAR-LOAN," the maximum loan interest rate will be significantly reduced, depending on credit rating (retail ASS grade 6, corporate credit BB+ or higher) and collateral ratio (at least 30%). The interest rate will be lowered from the previous range of 3.47% to 10.63% per annum to a new range of 3.47% to 4.30% per annum.

Park Moonsu, Head of Data Product Strategy at Gwangju Bank, said, "Through this business agreement with Hyundai Construction, we will take the lead in practicing green finance and faithfully fulfill our financial role in leading the future of the Honam region, the mecca of renewable energy."