SK Nexilis debuts green loan to fund RM2.3bil Sabah plant
13 Feb 2024
South Korea’s SK Nexilis Co Ltd, the world’s largest copper foil maker, has established the first green syndicated term loan facility through its Malaysian unit in order to fund the construction of the company’s first overseas factory in Sabah.
The RM2.3 billion copper foil plant, located at the Kota Kinabalu Industrial Park (KKIP), will have an annual production capacity of 50,000 tonnes, which will increase SK Nexilis’ global production capacity by twofold.
The copper foils produced will be exclusively used in electric vehicle batteries, enabling sustainable, low-carbon mobility solutions in various locations, including Korea, Malaysia, Poland, and North America.
SK Nexilis Malaysia Sdn Bhd chief executive officer Shin Dong Hwan said the electrification of motor vehicles is essential for the decarbonisation of the transport sector, which contributes about one-fifth of GHG 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 in a statement.
Shin said the company is deeply heartened to be part of this environmental, social, and governance (ESG) movement with our financial partners as it transitions towards a better, more sustainable future.
“The green loan is the culmination of efforts between SK Nexilis, SKC Co Ltd and SK Group and our relentless commitment towards ESG, as demonstrated by our Net Zero and RE100 initiatives,” he said.
OCBC Bank (Malaysia) Bhd will serve as the mandated lead arranger, facility and security agent, and joint lender.
The bank’s managing director, senior banker, and head of investment banking, Tan Ai Chin, said that Malaysia, being a significant hub for electrical and electronics, is strategically poised to cultivate a robust local electric vehicle manufacturing sector and ecosystem.
She said that SK Nexilis’ presence strengthens this ecosystem and contributes to the country’s initiatives towards decarbonisation.
Source: NST
