Shinhan to lead financing for battery storage project in Japan

Shinhan Financial Group will lead 4.9 billion yen ($35 million) in financing for a large-scale battery energy storage system (BESS) construction project in Watari, Miyagi Prefecture, becoming the first South Korean financial services firm to fund a BESS project in Japan.

The group said on Tuesday that Shinhan Bank, Shinhan Asset Management Co. and Shinhan Bank Japan (SBJ) will team up to raise the funding for the construction of a 20-megawatt BESS, including loan extensions.

SBJ will provide 1,225 million yen ($8.7 million) in loans as the major lender for the project.

“BESS is a new business model with high growth potential,” said a Shinhan Financial official. “We will continue to offer financial services for overseas infrastructure projects, including Japan’s renewable energy sector.”

Write to Jin-Seong Kim at jskim1028@hankyung.com

Yeonhee Kim edited this article.