Part of US$5 Bil. Cooperation Program with 3 Policy Lenders
LG Chem announced on April 23 that it has secured 550 million euros in a green loan from domestic financial institutions including Korea Development Bank (KDB).
The green loan is part of the US$5 billion to be extended to LG Chem by KDB, the Export-Import Bank of Korea and NH Nonghyup Bank for five years under the "Industrial and Financial Cooperation Program."
In general, green loans are provided to finance eco-friendly projects such as electric vehicles, renewable energy, and high-efficiency energy.
The green loan will help LG Chem finance the expansion of itw electric vehicle battery plant in Poland. This year, the company plans to invest 3 trillion won in facility investment in the battery sector. In addition, LG Chem and KDB have decided to execute the Win-Win Growth Fund worth 150 billion won early to help suppliers of materials, parts, and equipment overcome financial difficulties sparked off by the novel coronavirus crisis.
The fund, created with 60 billion won from LG Chem and 90 billion won from KDB, is a low-interest loan fund designed to provide operating funds such as those for equipment investment by suppliers.