Hyundai Mobis raises $940 mn via loan for EV parts plants in US

Hyundai Mobis Co., an auto part-making unit of Hyundai Motor Group, has raised $940 million via an overseas loan to build facilities for its electrification businesses in the US, the South Korean company said on Wednesday.

The 10-year loan has attracted seven overseas institutional investors thanks to the growth potential of the global electrification market and state-run Korea Trade Insurance Corp.’s credit insurance guarantee on the debts, Hyundai Mobis added.

The investment vehicle is Hyundai Mobis’ first overseas loan for green projects. The auto parts maker raised 350 billion won via domestic green bonds for its electric car components in July 2021.

The funds will be used to construct electric vehicle parts and battery plants in the US. The company announced in October last year that it will spend $1.3 billion until 2030 to build EV parts plants in the US.   

The EV module supplier to Mercedes-Benz AG, Stellantis N.V., Hyundai Motor Co. and Kia Corp., is building new EV parts plants in the US states of Alabama and Georgia.

It operates EV part plants in nine production bases in Korea, China and the Czech Republic and will build six more factories in its home country, the US and Indonesia.

Write to Il-Gue Kim at black0419@hankyung.com

Jihyun Kim edited this article.