NH NongHyup Bank said Tuesday it has executed its first transition loan, financing environmental improvement investments for companies that need to shift to lower-carbon operations.
The bank said the case shows how financial support can help fund equipment investments that improve environmental performance in the real economy. It plans to keep expanding green and transition lending in line with the group’s transition finance strategy.
The loan supported funds to install a wastewater treatment facility at a livestock products distribution company in Goseong County, South Gyeongsang Province. The company will use the project to reduce pollution and move to more environmentally friendly facilities.
NH NongHyup Bank said the loan was handled as transition lending after a suitability review under Korea’s green taxonomy, known as the K-Taxonomy, aimed at supporting a practical low-carbon shift.
The bank has also moved to broaden climate finance, including signing a business agreement Monday with the Korea Technology Finance Corp. on an evaluation project based on the K-Taxonomy. It said it plans to expand support to transition finance and continue strengthening low-carbon transition and ESG-related financial support for companies.
* This article has been translated by AI.
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