HHI secures $388 million green loan

South Korean shipbuilding giant Hyundai Heavy Industries (HHI) has obtained a green syndicated loan worth ₩480 billion ($388 million) from the Korea Development Bank (KDB) and other banks.

On 29 May 2020, HHI signed an agreement in Seoul with South Korea state bank KDB; its affiliate KDB Capital; Industrial and Commercial Bank of China’s (ICBC) Seoul branch and HSBC Korea.

Specifically, KDB has provided a sum of ₩350 billion, while HSBC, ICBC and the KDB affiliate have awarded ₩ 130 billion to HHI, Yonhap News Agency reported.

Green loans are used for financing projects that support the shift to a low-carbon future. This particular green loan is linked to environmentally friendly shipbuilding.

Hyundai Heavy will allegedly use the funding to develop technologies for LNG carriers.

The South Korean shipbuilding industry has seen a surge in LNG carrier orders over the last few months. Earlier this week, HHI and compatriot shipbuilders Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME) have inked a major deal amounting to ₩23.6 trillion to reserve their LNG shipbuilding capacity in order to meet future orders from Qatar.