Hyundai Mobis Secures 1 Trillion KRW for North America Electrification Investment

by Oh Kuemin

Published 08 Nov.2023 11:00(KST)

Long-term Low-interest Borrowing from Seven Overseas Financial Institutions

Hyundai Mobis announced on the 8th that it has secured an investment of $940 million (approximately 1.23 trillion KRW) through seven overseas financial institutions to establish a new electrification hub in North America. The company explained that with the added credit guarantee from the Korea Trade Insurance Corporation, a public export credit agency, it succeeded in obtaining low-interest, long-term loans (10-year maturity). Despite challenging conditions such as monetary tightening policies in major countries and rising market interest rates, the financial institutions highly evaluated the growth potential of the electrification market.

This is Hyundai Mobis's first green loan for overseas eco-friendly business investment. A green loan refers to a financing method used for eco-friendly business purposes such as electric vehicles or renewable energy. Hyundai Mobis previously issued green bonds in 2021 to promote eco-friendly projects domestically.

Earlier, the company announced in October last year that it would invest a total of $1.3 billion from this year until 2030 to establish new electrification production bases in North America. New factories for Battery System Assembly (BSA) and Powertrain (PE) systems will be built in four locations including Alabama and Georgia in the United States.

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Currently, the company operates nine electrification production bases worldwide (six domestic, three overseas). Additionally, six new electrification production bases are being established in South Korea, North America, and Indonesia. Hyundai Mobis is strengthening its competitiveness in the electrification business through a selection and concentration strategy to leap forward as a future mobility technology specialist company, and plans to continuously secure mid- to long-term growth engines in related fields.