South Korea’s SK Innovation Co. said on Wednesday it has raised $500 million in green loan facilities from the state lender Eximbank of Korea to finance the construction of its second electric vehicle battery plant in Komarom, Hungary.

A green loan is a financing instrument offered to “green growth” projects which aim to promote economic growth while focusing on reducing the use of fossil fuel energy.

The chemical and battery unit of South Korean conglomerate SK said the loan available for maximum seven years were provided on “favorable borrowing terms” thanks to full guarantee from SK Innovation.

The latest borrowing follows the company’s $717 million green loans in 2019 to finance the construction of EV battery and separator manufacturing plants overseas. The company’s U.S. operation issued green bonds worth $450 million last year and $1 billion this year to finance its battery plant in Georgia.

SK Innovation has so far secured more than $3 billion in green financing.

SK Innovation is set to build its third battery plant in Hungary with an annual production capacity of 30GWh in the city of Ivancsa this year.

The procurement of the green loan from the Eximbank means SK Innovation’s battery business is regarded again as an eco-friendly business project, said SK Innovation’s treasury manager.

By Pulse

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