SK Geocentric Wins W475b Loan in ESG Initiative

(From left) BNP Paribas Head of Corporate Finance Seo Jong-gab, French banking group Korean president Philippe Noirot, SK Geocentric CEO Na Kyung-soo and the company’s strategy chief Choi An-seob pose after the signing. Ceremony in Seoul on Tuesday when I’m filming. (SK Geocentric)

SK Geocentric, the chemical materials arm of South Korean conglomerate SK Group, announced on Tuesday that it received 475 billion won (358 million won) from global banks in recognition of its future plans for its environmental, social and governance initiatives. US dollars) announced that it had secured a loan equivalent to

SK Geocentric has entered into partnerships on sustainability-related financing with five global financial institutions: France’s BNP Paribas, Agricultural Bank of China, Bank of China, Japan’s Mitsubishi UFJ Financial Group and France’s Crédit Agricole CIB. A three-year contract signing ceremony was held.

The ceremony was attended by Na Kyung-soo, CEO of SK Geocentric, Kim Yang-seop, head of SK Innovation Financial Group, and key executives of related banks.

According to the company, the agreement makes SK Geocentric the first domestic company to receive approval from international certification body Det Norske Veritas to secure a sustainability-related loan in the country.

Sustainability-related loans refer to loan instruments that encourage borrowers to achieve predetermined sustainability performance goals. Once the target is met, the bank will give preferential interest rates to the companies involved.

SK Geocentric had previously submitted its green management goals to DNV and Global Bank, and the bank responded with a positive evaluation.

Plans included scaling up plastic recycling to 900,000 tons by 2025, reducing greenhouse gas emissions by 24.9% by the same year.

The company said it aims to use the acquired funds for various ESG value-related businesses, including the establishment of a recycling cluster in Ulsan.

“I am delighted that a large-scale loan for the company’s eco-friendly business, such as the recycling of waste plastics, has been implemented, recognized in the form of the first sustainable link loan (in Japan), and verified for global certification. It’s very meaningful agency,” Na said.

Philippe Noirot, CEO of BNP Paribas, said:

“We will work together to ensure that SK Geocentric grows into a leading environmental protection company in the business of solving the waste plastic problem.”

The large-scale funding comes at the risk of heightened liquidity stress for domestic companies in the wake of a series of rate hikes and the Legoland default.

Lee Yoon Seo (yoonseo.3348@heraldcorp.com)

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