EcoPro BM, a South Korean electric vehicle (EV) battery maker,  has signed a series of loans backed by export credit agencies (ECAs) for its first overseas plant in Debrecen, Hungary.

The seven-year financings, amounting to US$860 million, will support the purchase of manufacturing equipment from Korean exporters. The three financing packages comprise a US$180 million loan backed by the Export-Import Bank of Korea (Kexim), a US$250 loan also guaranteed by Kexim, and a US$430 million supported by Korea Trade Insurance Corporation (K-Sure).

Milbank represented BNP Paribas Seoul Branch and HSBC (as bookrunners and ECA coordinators), BNP Paribas and HSBC Continental Europe (as green loan coordinators), the mandated lead arrangers Kexim and K-Sure in the financing package.

According to Milbank, the financing marks the first time a Korean cathode material company has received ECA funding in the trillion-won range for overseas investments.

EcoPro BM is constructing a cathode production base in Debrecen with an annual capacity of 108,000 tonnes. Lithium ion batteries have four main components – cathodes, anodes, separators and electrolytes.

The total investment required for the project is estimated at US$1.28 billion. The plant is scheduled to begin production in 2025.