ANZ has helped Hyundai Mobis secure sustainable funding to support an expansion of the group’s electric-vehicle manufacturing operations in the United States.
The $US940 million green-labelled, term-loan facility is backed by the Korea Trade Insurance Corporation, of K-Sure, the official export credit agency (ECA) of the Republic of Korea.
The funding will support plans for four electrification facilities in the US state of Georgia, to establish a stable electric vehicle production hub in the North American market.
ANZ acted as lead ECA coordinator, sole green loan coordinator, mandated lead arranger and bookrunner on the deal, which was with Hyundai Mobis Americas Inc, a fully owned subsidiary of Hyundai Mobis.
The electric vehicle market around the world has become increasingly competitive around the world as rising demand creates value right across the value chain, from manufacturing to raw materials. The International Energy Agency expects 14 million electric vehicles to be sold in 2023, a 35 per cent rise on the previous corresponding period.
Certainty
ANZ’s Global Head of Project and Export Finance, Aaron Ross, said the transaction reflected the strength of ANZ’s global network and capability working with ECAs.
“We’re increasingly seeing clients gravitate to this type of financial structure due to its long-tenor and funding certainty for client and bank, underscored by strong risk management outcomes,” he said.
Hyundai is South Korea’s largest car manufacturer and the third largest in the world. The group has worked closely with ANZ in the sustainability space, pairing to develop Hyundai Mobis’ Green Finance Framework and identification of eligible green asset categories.
In 2022, ANZ helped finance an electric-vehicle battery manufacturing facility in Indonesia for HLI Green Power, a joint venture between Hyundai and lithium-ion battery manufacturer LG Energy Solution.
That came after ANZ helped another Hyundai subsidiary, Hyundai Motor Group Innovation Centre, obtain its first green loan. ANZ acted as joint lead arranger and sustainability adviser on a $S230 million deal for the Singapore-based group.
