Financial Agreement Signed with Four Lenders Including KDB From Project Rights Acquisition to Financing First Overseas Investment-Development Project by a Korean Builder
Hyundai Engineering has signed a project financing (PF) agreement worth approximately 460 billion won ($310 million) with four domestic and international financial institutions to develop a solar power project in Texas.
The company announced Monday that it had concluded the financing deal with a four-member lender group comprising the Korea Development Bank, Crédit Agricole CIB, OCBC Bank, and Siemens Financial Services. The agreement secures stable funding for the Hillsboro Solar Power Plant project being developed in Hill County, Texas.
The Hillsboro Solar Power Plant will have a generation capacity of 200 megawatts. Construction is scheduled to begin in the first half of this year, with commercial operation targeted for late 2027. Once completed, the plant is expected to produce approximately 476 gigawatt-hours of electricity annually, enough to power about 46,000 households in the United States.
The project marks the first case in which a Korean construction company has directly managed every stage of an overseas renewable energy project, from acquiring project rights and extending permits to securing a power purchase agreement (PPA), investment, and financing. The deal is seen as a turning point for Hyundai Engineering as it expands its portfolio beyond its traditional engineering, procurement, and construction (EPC) business into investment-development projects.
Hyundai Engineering previously completed the Saemangeum onshore solar power project Section 1 (99 megawatts) in December 2021 in partnership with Korea South-East Power. The company has since expanded into various energy sectors, breaking ground on a water-electrolysis-based hydrogen production facility in Boryeong, South Chungcheong Province, and winning an initial design contract for a next-generation research reactor at the University of Missouri in the United States.
"This financing agreement is significant in that it marks the full-scale launch of our first renewable energy investment-development project in North America," a Hyundai Engineering official said. "We will further strengthen our position in the global energy market."
AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.
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