South Korea’s asset management company Shinhan BNP Paribas Asset Management said Thursday it has snapped up a combined 52 billion-won ($46 million) commitment to a new private fund to finance a wind turbine project in South Jeolla Province.

The new fund, dubbed SH BNPP Green New Deal Fund No. 1, will target 17.325-megawatt wind turbines in Wando County, South Jeolla Province. Shinhan BNP Paribas said it managed to reduce the price volatility by entering into a 20-year supply contract with state-run Korea Midland Power based on Renewable Energy Certificates.

Green finance fund SH BNPP Green New Deal Fund No. 2 is also in the works as it secured some 100 billion won in commitments for a project to convert a tangerine farm into a photovoltaic power station on Jeju Island.

The announcement comes in line with the company’s push for green infrastructure financing by partnering with its parent Shinhan Financial Group’s strategy to factor environmental, social and governance issues into its investment decision, the company said.

Earlier in June, Shinhan BNP Paribas announced a 520 billion-won fund with Korea East-West Power and Hyundai Energy Solutions to back the solar panel industry in Korea.

Shinhan BNP Paribas also said in a statement that the funds can play a role of “spearheading Korea’s New Deal initiative” by investing in new and renewable energy infrastructure projects.

Along with the two funds, Shinhan BNP Paribas is gearing up to create another fund dedicated to green infrastructure by mid-December.

SH BNPP Green New Deal Fund No. 3, a 200 billion-won blind pool fund, will be created to finance wind power projects, including one in Bonghwa County, North Gyeongsang Province, as well as fuel cells and biomass energy development projects. Investors in the fund may explore co-investment opportunities.

Shinhan BNP Paribas is a 65:35 joint venture of Shinhan Financial Group and BNP Paribas Asset Management. The company oversees some 59 trillion won assets in securities, derivatives, real estate and infrastructure, among others.

By Son Ji-hyoung (consnow@heraldcorp.com)