Shinhan Financial Forms 200 Bil. Won Fund for Japanese Solar Power Investment

The Japanese government has shifted its long-term energy policy toward developing renewable energy sources since the 2011 Fukushima nuclear disaster. (image: Kobizmedia)

SEOUL, Nov. 16 (Korea Bizwire) — Shinhan Financial Group held a signing ceremony on November 14 with six institutional investors who will invest in the 200-billion-won “Shinhan BNPP Japan Solar Power Fund.” The targeted blind fund will specialize in investing in companies in Japan’s solar power industry.

This is a 23-year closed private equity trust fund that will make equity investment and subordinated debt investment. It will be managed by Shinhan Paribas Asset Management, with major financial institutions participating in the investment as major investors including Hanwha Life, Samsung Life, NH Life, Heungkuk Life, as well as Shinhan Bank and Shinhan Life.

The Japanese government has shifted its long-term energy policy toward developing renewable energy sources since the 2011 Fukushima nuclear disaster. It currently runs a fixed-price energy purchasing program for renewable energy suppliers as a way to guarantee their profit for 20 years.

Since last year, Shinhan Bank Japan has participated in the solar power generation project in Japan based on its competitive edge in long-term low interest rates and yen loans. A Shinhan Bank official said, “Shinhan Bank Group has succeeded in launching a blind fund specialized in investing in the overseas renewable energy sector for the first time among Korean financial institutions. This will be a model case for other banks to overcome the narrow domestic market and move overseas for more profitable investment.”