Milbank LLP advised The Export–Import Bank of Korea (“KEXIM”), Korea Trade Insurance Corporation (“K-SURE”), Euler Hermes (“Hermes") and a consortium of international commercial banks in connection with a US$2 billion financing for SK On’s latest Gigafactory plant in Ivancsa, Hungary.
The debt facility is pursuant to the battery maker’s long term strategy to invest US$10 billion in the proliferation of its electric vehicle (“EV”) battery supply business, globally. SK On plans to use the facility resources to invest in Plant No. 3 in Europe, currently under construction in Iváncsa, Hungary. With a total investment of KRW 3.31 trillion (US$2.5 billion), the plant in Iváncsa will annually produce a 30 gigawatt-hours (GWh) battery scale from 2024. The amount is enough to power 430,000 EVs per year.
The financing was supported by KEXIM, K-SURE and Hermes with lead coordination from commercial banks HSBC and BNP Paribas.
“Significant teamwork from all parties and coordinating across numerous jurisdictions ensured the success of this transaction," said Milbank special counsel Brian Youn. "On behalf of the Milbank team, we are honored to have advised the finance parties in bringing SK On’s highly important green energy transition financing to fruition.”
Partner David Gartside and special counsel Brian Youn led the team from Seoul with associates Amos Yoo in Hong Kong and Kei Kitatani in Tokyo. The wider Milbank team included partner Aled Davies in Tokyo, regulatory specialists partner Dara Panahy, special counsel Bijan Ganji and associate Pinky Mehta in Washington, DC and tax specialists partner Russell Jacobs and associates Fareed Muhammed and Pranav Subhedar in London.
