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SEOUL, South Korea, Nov. 8, 2023 /PRNewswire/ -- Hyundai Mobis' (KRX: 012330) strategy for expanding its global footprint in the electrification business is progressing smoothly. Following its successful funding for a battery cell joint venture factory in Indonesia last year, the company has now efficiently secured funds for electrification investments in North America, bolstering the momentum of its core business in future mobility.
Hyundai Mobis recently announced on 8th that it has secured an investment of 940 million dollars to establish a new electrification hub in North America, liaising with seven international financial institutions. Despite challenging conditions, such as the tightening of major national currencies and rising market interest rates, the company successfully achieved a low interest, long-term financing (with a maturity of 10 years) driven by the promising growth potential of the global electrification market. A credit guarantee from the Korea Trade Insurance Corporation, an export credit agency, further facilitated this.
This funding endeavor has been particularly notable as Hyundai Mobis' first overseas Green Loan. While Hyundai Mobis issued green bonds domestically in 2021 to advance eco-friendly projects, this marks the first occasion they have utilized the Green Loan method for environmentally-friendly business investments abroad. Green Loans refer to funding methods for eco-friendly businesses, such as electric vehicles and renewable energy. In an era where global financial institutions emphasize ESG, securing funds through Green Loans can offer favorable interest conditions and elevate a company's eco-friendly image.
Previously, in October of last year, Hyundai Mobis announced its plans to invest 1.3 billion dollars from this year through 2030 to establish new production hubs for electrification in North America. The plan includes building new Battery System Assembly (BSA) and PE System factories in four locations, including Alabama and Georgia, to respond to the growing global electrification market proactively. With this funding, it is anticipated that the electrification projects in North America will progress as planned.
Currently, Hyundai Mobis operates electrification production hubs in nine locations globally (six domestic and three overseas) and is establishing six new electrification production hubs in South Korea, North America, and Indonesia. Hyundai Mobis remains committed to enhancing its competitiveness in the electrification business through a strategy of selectivity and focus as it transitions into a future mobility technology specialist. The company plans to secure mid- to long-term growth engines in the relevant fields continually.
About Hyundai Mobis
Hyundai Mobis is the global no. 6 automotive supplier, headquartered in Seoul, Korea. Hyundai Mobis has outstanding expertise in sensors, sensor fusion in ECUs and software development for safety control. The company's products also include various components for electrification, brakes, chassis and suspension, steering, airbags, lighting, and automotive electronics. Hyundai Mobis operates its R&D headquarters in Korea, with four technology centers in the United States, Germany, China and India. For more information, please visit the website at http://www.mobis.co.kr/
Media Contact
Jihyun Han: jihyun.han@mobis.co.kr
Myong Sun Song: sms@mobis.co.kr
