ANZ Arranges Inaugural Korean Export Credit Agency Loan for Southeast Asia's First EV Battery Plant
ANZ today announced the successful coordination and structuring of an untied financing facility for HLI Green Power's new electric vehicle (EV) battery production facility in Karawang, Indonesia, Southeast Asia's first EV plant.
For the 10-year, USD 711 million Korea Trade Insurance Corporation (K-Sure)-backed Term Loan Facility, the Bank served as Sole ECA Coordinator, Mandated Lead Arranger, Lender, and Facility Agent. The first phase of the project aims to construct a 10GW p.a. facility, to enter mass production in 2024.
HLI is a Joint Venture with Hyundai Motor Group Companies (Hyundai Mobis, Hyundai Motor Company, and Kia Corporation), South Korea's major auto group and maker of electric vehicles, and LG Energy Solution, the world's largest lithium-ion battery manufacturer. It is the first joint venture to cover the EV value chain, from the battery to car production.
ANZ Global Head of Project & Export Finance, Aaron Ross, said:
“We’re pleased to partner with HLI Green Power on this milestone deal – the first Korean ECA-supported EV battery sector transaction to reach financial close.
“We are seeing significant growth in the EV battery sector as automotive companies look to support the global transition to net-zero. There is particular interest in Indonesia as a hub, given it is home to the world’s largest nickel reserve."