ANZ has announced the successful coordination and structuring of an untied financing facility for HLI Green Power's electric vehicle battery manufacturing facility in Karawang, Indonesia. This plant is the first of its kind in Southeast Asia.
The bank took on multiple roles, including Sole ECA Coordinator, Mandated Lead Arranger, Lender, and Facility Agent for the 10-year USD711 million Korea Trade Insurance Corporation (K-Sure) backed Term Loan Facility. The project's initial phase aims to establish a 10GW per annum facility with plans to begin mass production by 2024.
HLI is a joint venture involving Hyundai Motor Group Companies—Hyundai Mobis, Hyundai Motor Company, and Kia Corporation—and LG Energy Solution. This collaboration marks the first joint venture covering the entire EV value chain from battery production to vehicle manufacturing.
Aaron Ross, ANZ Global Head of Project & Export Finance, stated: “We’re pleased to partner with HLI Green Power on this milestone deal – the first Korean ECA supported EV battery sector transaction to reached financial close."
He further noted: “We are seeing a 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.”