K&H: at the forefront of green financing

By: STA Date: 2023. 01. 31. 10:00

Today, K&H Bank disbursed its first corporate loan that fully complies with the European Union’s sustainability regulations, the EU Taxonomy Regulation. During the transaction, K&H will refinance the wind farm of ALTEO Nyrt. in the amount of HUF 4 billion.

The subsidiaries of K&H and ALTEO Nyrt., listed on the Budapest Stock Exchange, concluded a contract at the end of 2022 for the refinancing of the wind farm of the company group with an installed capacity of 47.5 MW. Within the framework of the agreement, K&H provides a loan of HUF 4 billion (approx. EUR 10.3 million) to the ALTEO group.

The 24-turbine wind farm was purchased by ALTEO from its own resources in 2019 and 2020

The wind farm park accounts for two-thirds of the company group’s renewable power plant portfolio. 23 of the wind turbines are V90 manufactured by Vestas, the world’s leading wind turbine manufacturer, with an estimated lifespan of 25 years, which can be extended to 50 years with modernization. K&H’s parent company in Belgium, the KBC Group, has extensive experience in the financing of wind farms, and has become the market leader in Belgium in recent years in terms of loan volume. K&H considers it important to have diversified participation in the financing of renewable electricity generating capacities, such as the financing of wind power plants in addition to solar power plants and the role of financier in the development and modernization of the domestic wind power park.

ALTEO Nyrt. is one of the few Hungarian companies that has a so-called ESG rating

According to this, the impact of its operation on the environment and society is examined by external experts, and the results of the examination are made public. After examining all the certificates and information provided by ALTEO, the Bank determined that the transaction complies with the strictest sustainability regulations of the European Union. As a result, K&H Bank disbursed its first loan that fully complies with the so-called Taxonomy Regulation of the EU, which entered into force in 2022.

“Our surveys show that few medium-sized and large domestic companies have a sustainability strategy or strive to comply with the EU Taxonomy Regulation.” – said Suba Levente, head of K&H’s sustainability program, according to whom companies will be less and less able to avoid this obligation. “The so-called Taxonomy Regulation of the European Union imposes increasingly strict reporting rules for companies, even if the smaller ones are temporarily exempt from this.”

“Sustainability is a defining element of the ALTEO Group’s business strategy. As an integrated energy production and service company, we are proud that we were among the first to comply with the complex rules of EU Taxonomy compliance in connection with this loan transaction.” – emphasized Anita Simon, ALTEO Nyrt.’s Deputy CEO responsible for Sustainability and Circular Economy.

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