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Milbank LLP advised Korea Trade Insurance Corporation (“K-SURE”) and a consortium of international commercial banks in connection with a US$711 million term loan to a joint venture by LG Energy Solution, Ltd., Hyundai Mobis Co., Ltd., Hyundai Motor Company and Kia Corporation to build an electric vehicle (“EV”) battery cell plant in a new industrial complex in the Karawang region, east of Jakarta, Indonesia.
The plant is scheduled to enter mass production in early 2024 and will initially produce 10 gigawatt hours (GWh) worth of battery cells per year, enough to run more than 150,000 EVs, ramping up to 30 GWh.
The financing was supported by K-SURE and was led by commercial lender Australia and New Zealand Banking Group Limited with The Hongkong and Shanghai Banking Corporation Limited, DBS Bank Limited, JPMorgan Chase Bank, N.A., Singapore Branch and Banco Santander, S.A. participating in the consortium.
Partner David Gartside and special counsel Brian Youn led the team from Seoul with associate Amos Yoo in Hong Kong. The wider Milbank LLP team included partner Aled Davies in Tokyo, regulatory specialists partner Dara Panahy, special counsel Bijan Ganji and associate Sean Heiden in Washington, DC, Tax partner Russell Jacobs and associates Cosmos Fung and Pranav Subhedar in London.
“This is yet another excellent example of the strong supply chain cooperation between Korea and Indonesia pursuant to the EV revolution and energy transition. Milbank are proud to have supported the lenders on this successful financing.” said Mr. Gartside.
