Shinhan Bank said on April 9 it signed a "productive finance" agreement with SK On at TP Tower in Seoul's Yeouido to support the battery maker's overseas expansion in electric vehicle batteries and energy storage systems.

The agreement was designed to support the expansion of the K-battery supply chain and strengthen competitiveness in global markets. Jang Ho-sik (장호식), head of Shinhan Bank's CIB Group, and Kim Min-sik (김민식), head of finance at SK On, attended the signing ceremony.

Under the agreement, the two sides decided to cooperate on financial support to strengthen global competitiveness, support to respond to foreign exchange market volatility, financial advisory and capital markets funding support for global eco-friendly energy businesses, and financial education for workers at home and abroad.

Shinhan Bank plans to provide credit enhancement, in the form of a guarantee, for SK On's $500 million global bond issue. This will allow SK On to raise funds in global capital markets on more favorable terms and use them to repay existing debt and for local production activities.

Shinhan Bank also plans to provide FX advisory to help respond to foreign exchange market volatility and consulting across capital markets funding, including the issuance of corporate bonds and capital securities. It also plans to review support for financial education programs, such as tailored financial planning, for workers at business sites in Korea and abroad.

A Shinhan Bank official said the agreement was an example of productive finance in which a bank and a company cooperate to help a national strategic industry make a global leap. The official said the bank will continue to support global growth through tailored financial solutions that reflect corporate demand.