Copper foil producer SK Nexilis sets up RM2.3b manufacturing facility in Sabah
21 Feb 2024
SK Nexilis Co Ltd, the world’s largest copper foil producer, has set up for its subsidiary SK Nexilis Malaysia Sdn Bhd its first green syndicated term loan facility (green loan) in Malaysia to finance the construction cost of its first overseas copper foil manufacturing facility in the Kota Kinabalu Industrial Park, Sabah.
In a recent statement, the company said the RM2.3 billion manufacturing facility would have an annual production capacity of 50,000 tons, increasing SK Nexilis’ global production capacity by two times.
It said the copper foils produced will be exclusively used in electric vehicle batteries, enabling sustainable, low-carbon mobility solutions in various locations, including South Korea, Malaysia, Poland and North America.
OCBC Bank (Malaysia) Bhd acts as the green loan structuring adviser, playing a pivotal role in structuring the green loan and advising on the underlying green financing framework to adapt to SK Nexilis’ environmental, social and governance (ESG) objectives.
OCBC Bank also acts as the mandated lead arranger, facility and security agent, and a joint lender, alongside AmInvestment Bank Bhd as the other mandated lead arranger, and AmBank (M) Bhd as a joint lender.
SK Nexilis also appointed Moody’s to issue a second party opinion report.
The report certifies the green loan framework to be in compliance with the green loan principles.
SK Nexilis Malaysia chief executive officer Shin Dong Hwan said the electrification of motor vehicles is essential for the decarbonisation of the transport sector, which currently contributes approximately one-fifth of greenhouse gas emissions globally.
“Our new manufacturing facility will not only facilitate the decarbonisation initiative, but also create job opportunities for the local talent network, and provide traction for more investments to enhance the local supply chain development for electric vehicles,” he said.
OCBC Bank managing director, senior banker and head of investment banking Tan Ai Chin said that as a major electrical and electronics hub, Malaysia is well positioned to develop a thriving local electric vehicle manufacturing base and ecosystem.
“SK Nexilis’ presence reinforces this ecosystem, and supports the nation’s decarbonisation efforts,” she said.
Source: The Edge Malaysia
