Shinhan BNP Paribas said Sunday it has clinched a combined 520 billion won ($430.1 million) commitment to create a fund to support small firms dedicated to 280-megawatt solar energy projects across South Korea.

The Seoul-based asset management firm’s deal comes amid growing new and renewable energy momentum buttressed by the nation’s recent environment initiative, called “green new deal,” aimed at investing in environmentally-friendly energy businesses and creating jobs in the related industries.

Backers of the fund include organizers of the project -- state-led Korea East-West Power, Hyundai Energy Solutions -- as well as undisclosed Korean insurance firms.

The fund’s first batch of targets will be primarily cumulative preferred shares of 102 companies that have gained state approval for building new power plants before end-February. Those who receive the fund in the first batch are scheduled to complete the construction by October. The fund will come up with the second batch of investment targets by July, so that the construction can be completed by end-2020.

All selected companies are obliged to use homegrown modules, solar inverters and power transformers to operate the facility for 20 years.

The investment will contribute to the growth of domestic solar power industry and encourage small firms to become self-reliable, Shinhan BNP Paribas said in a statement.

The joint venture of Seoul-based Shinhan Financial Group and Paris-based BNP Paribas, has a track record of investing in new and renewable energy. It has pledged a combined 1 trillion won to green infrastructure projects at home and 1.2 trillion won in countries including Japan and the United States.

By Son Ji-hyoung (consnow@heraldcorp.com)