SK Innovation Secures $500 Million Green Loan for Battery Plant Expansion in Hungary

SK Innovation Hungary Plant No. 2. Photo by SK Innovation

[Asia Economy Reporter Choi Dae-yeol] SK Innovation announced on the 9th that it has borrowed $500 million in Green Loans from the Korea Export-Import Bank to invest in its battery factory in Komarom, Hungary. The company had previously approved a debt guarantee for SKBM, the second plant in Hungary, at the board meeting in late last month.

The borrowed funds will be used to build the second plant in Hungary. The Green Loan is one of the financing methods used for eco-friendly projects such as electric vehicles and renewable energy, and the company said it was borrowed under favorable conditions for up to 7 years.

Previously, the company was the first domestic firm to raise funds through Green Loans in 2019 and has secured investment funds annually through eco-friendly financing. The funds were used to build overseas electric vehicle battery plants and separator production plants in Hungary and the United States. During the construction of the U.S. plant, the company borrowed $450 million in Green Loans locally last year and additionally issued $1 billion in Green Bonds earlier this year. The total funds secured by the company for its battery and materials business amount to 3.2 trillion won.

Kim Yang-seop, Head of Finance at SK Innovation, said, "The battery business has once again been recognized as an eco-friendly business," adding, "Investment in the second plant in Hungary will proceed smoothly."

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