Korea Hydro Issues Asia's First Green Bond For Nuclear Energy

South Korea’s Korea Hydro & Nuclear Power Co. (KHNP) has made history by issuing Asia’s first green bond designed to finance nuclear energy projects, signaling a growing investor acceptance of nuclear power as a sustainable alternative to fossil fuels. The company raised HK$1.2 billion (approximately $154 million) through the bond sale, targeting institutional investors in Hong Kong and Singapore, according to a statement released on Wednesday.

This development marks a key milestone in the global resurgence of the nuclear energy sector, which is increasingly seen as a stable, low-carbon energy source that can provide reliable, round-the-clock power. Nuclear energy has gained renewed support amid the global push for cleaner energy alternatives, particularly after the onset of Russia’s invasion of Ukraine in 2022, which led to a surge in global energy prices and disruptions in natural gas supplies from Europe’s primary supplier.

KHNP is leading the charge in the global nuclear energy renaissance, with ambitious plans to expand its nuclear capabilities both domestically and internationally. The company is currently in discussions with utilities around the world and is on track to meet the South Korean government’s goal of exporting 10 nuclear reactors by 2030.

The funds raised through the green bond will be allocated towards enhancing safety measures at nuclear power plants and advancing research and development efforts for next-generation reactors. KHNP emphasized that this successful bond issuance will enable the company to finance nuclear power projects at more favorable interest rates, making future investments more cost-effective.

In recent years, other energy companies have also embraced green bonds to support nuclear energy. Notably, Constellation, a U.S.-based power producer, issued the first corporate green bond in 2023 for nuclear energy projects, raising $900 million. Additionally, Japan’s Kansai Electric Power Co. issued a transition bond in 2024 to fund its nuclear power initiatives.

As global interest in nuclear energy grows, KHNP’s green bond issuance highlights the increasing role of nuclear power in the transition to cleaner energy solutions.