Crédit Agricole CIB supported Korea Hydro and Nuclear Power in issuing Asia’s first green nuclear bond

On 5 March 2025, Crédit Agricole CIB supported Korea Hydro and Nuclear Power (KHNP), South Korea’s largest electric power company, in issuing a HK$1.166 billion international green nuclear bond – the first-of-its-kind in Asia. Proceeds of this green nuclear bond will be used for the research and development (R&D) investments focused on enhancing the safety of nuclear power plants and developing next-generation nuclear technologies. Crédit Agricole CIB acted as the Sole Dealer for this landmark transaction.

This transaction not only marks a significant milestone in South Korea’s journey towards a sustainable energy future, but it also underscores Crédit Agricole CIB’s exceptional expertise in mobilising sustainable capital for nuclear energy projects. Notably, Crédit Agricole CIB played a pivotal role in EDF’s first euro green bond with proceeds financing nuclear capital expenditures, and served as the Sole Green Structuring Agent for the United States’ inaugural corporate green bond that can be utilised to finance nuclear projects for Constellation.
Ensuring access to affordable, reliable, sustainable, and modern energy is one of the 17 United Nations Sustainable Development Goals (SDGs). Nuclear power plays a critical role in Korea’s sustainable energy grid, contributing approximately 28% of the country’s total electricity generation and is integral to the government’s plan to increase this proportion to 35% by 2036. As South Korea’s sole nuclear generation company, KHNP is instrumental in facilitating this objective through continuous R&D efforts aimed at strengthening core technologies and safety capabilities in nuclear power plants. 

In conjunction with the issuance, Crédit Agricole CIB also supported KHNP in updating its green bond framework that outlines eligibility criteria for nuclear R&D projects. The eligibility criteria reference technical thresholds for nuclear economies activities defined in the Korean Green Taxonomy (K-Taxonomy), published by the Ministry of Environment, and the EU Taxonomy. A separate Nuclear Bond Register has been created to track the proceeds of green nuclear bond issuances, ensuring full traceability and distinction from other green bond issuances. Post-issuance, KHNP is committed to publishing an annual progress report and will seek independent external verification of the allocation of proceeds and their impacts until full allocation of proceeds is achieved. 

KHNP’s green bond framework received a positive second-party opinion (SPO) from Moody’s Investor Service, attaining a ‘SQS1 (Excellent)’ score – the highest possible sustainability quality rating in Moody’s SPO methodology. To date, only about 9% of issuers worldwide have achieved a SQS1 rating, making this the first framework with nuclear power-related use of proceeds to receive such recognition.

Visit KHNP’s corporate website Will open in a new tab to find out more about the KHNP Green Bond Framework (2024).