SK Innovation has decided to procure 1 trillion won through 'Green Bond' method to build a battery plant in the U.S., the company said on Jan. 6.
The company held a board meeting last month and decided to guarantee the process of issuing green bonds worth 1.09 trillion won (about $986 million) in the U.S.
Green Bond can be recognized for its business eco-friendliness through financial institutions' certification with limited use in eco-friendly fields such as electric vehicles and renewable energy, and in this case, it can be financed under favorable conditions.
The green loan contract worth 1 trillion won was concluded between SK Battery America (SKBA), a U.S. electric vehicle battery subsidiary of SK Innovation, and a financial institution. The green bond contract is scheduled to take place this month.
In April last year, SK Innovation invested 894.4 billion won in its second U.S. battery plant by purchasing SKBA shares. This green bond contract will reportedly cover the remaining 1 trillion won worth of construction costs.
An official of SK Innovation said, “The funds raised by Green Bond will be used to build a second plant for electric vehicle batteries in Georgia. Construction of the 11.7 GWh second plant, which started last year, is planned to mass-produce in 2023. Construction costs are estimated to total $1.5 billion.”