NH NongHyup Bank, BNK Busan Bank Join Financing for Sinan Ui Offshore Wind Project

The Sinan Ui offshore wind power project, the first investment backed by the National Growth Fund, has moved into full-scale funding execution, putting the development on track.

According to the financial industry on the 13th, NH NongHyup Bank said it will join the project financing agreement for the Sinan Ui offshore wind power project.

The project will build a 390-megawatt offshore wind complex in waters near Uido, Sinan County, South Jeolla Province. Total project costs are 3.4 trillion won. It is the first case of the National Growth Fund supplying capital to an industrial project.

NH NongHyup Bank will provide a total of 207 billion won, including 120 billion won in senior loans and 87 billion won in indirect investment through its Future Energy Fund.

The bank also plans tailored support for partner companies by using its strong branch network in South Jeolla. It will introduce reverse factoring — early purchases of accounts receivable — to help local equipment and materials suppliers that may face cash shortages during the large-scale PF process. Companies with strong wind technology will be eligible for a technology-finance special program offering low-interest loans and guarantees.

“Participation in the Sinan Ui offshore wind power project is an excellent example of the locally focused, productive finance NH NongHyup Bank pursues,” a bank official said. “We will continue expanding productive finance that helps environmentally friendly energy industries and regional small and midsize companies grow together.”

BNK Busan Bank will also join the PF agreement. Drawing on its experience in shipbuilding and maritime finance, Busan Bank said it is the only regional bank to participate in the lending group for the project.

Busan Bank has positioned maritime finance as a core specialty, providing services across ship finance, refund guarantees and port infrastructure. It said the PF participation will help speed efforts to diversify its business portfolio.

Noh Hae-dong, head of Busan Bank’s Maritime and IB Group, said the deal will be an opportunity to expand financial support into energy infrastructure based on the bank’s maritime finance experience. He said the bank will continue strengthening financing for renewable energy such as offshore wind and for maritime infrastructure.