Shinhan launches $350M renewable funds, including Korea's first for resident profit-sharing
What's the deal? Shinhan Asset ManagementDealroom has a profile for this one. Try Dealroom → has launched two energy infrastructure blind funds worth a combined US$419.2M. One of them, the Shinhan Resident Profit-Sharing Private Special Asset Investment Trust No. 1, is what the firm calls the industry's first fund dedicated to resident participation.
How it works: The profit-sharing fund supplies capital to local residents and resident cooperatives taking part in large-scale renewable projects, then returns a portion of operating revenue to them. Its first investment target is a large offshore wind project with resident participation.
The other fund: The Shinhan Energy Infrastructure Growth Private Special Asset Investment Trust No. 1 invests in domestic renewable energy and power grid projects. It combines senior and subordinated lending with equity to fund every stage, from development through construction and operation.
The growth fund aims to bring private capital into public-led projects run by state power generators and policy finance institutions, as well as projects linked to Korea's National Growth Fund.
Why now? Korea is mobilising public and private capital for renewable generation and grid infrastructure. The National Growth Fund approved US$310.2M for renewable-related projects in June, and a 390-MW offshore wind project secured a record US$2.42B financing package in April.
What's the endgame? "The profit-sharing fund is meaningful in that it links the energy transition with shared regional growth," said Lee Ho-joon, executive director of the firm's infrastructure management division. Shinhan said it plans to expand into areas including carbon emission rights, port carbon neutrality, and transmission and distribution networks.
The signal: The launch matters less for its scale than its structure. By financing resident participation, Shinhan is targeting two practical constraints on Korean renewables — early-stage funding and local acceptance. With the resident-sharing model already being tested in offshore wind, execution and the terms of local participation will decide whether the approach works.
Read more: en.sedaily.com
Image credit: DECCgovuk
