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Overview

Bank of China participates in $280 million USD syndicated loan to SK Battery America for Electric Vehicle Battery Plant Project (Linked to Record ID#106240)

Commitments (Constant USD, 2023)$46,666,667
Commitment Year•2023Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2023

Geospatial footprint

Map overview

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The first 9.8GWH, 2.4 million-square-foot plant commenced construction in in spring 2019 with project completion scheduled for spring 2020. The second 11.7GWH plant began construction in July 2020. More detailed location information can be found at: https://www.openstreetmap.org/way/1017448108#map=17/34.234601/-83.490397

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Australia and New Zealand Banking Group (ANZ)
  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • Credit Industriel et Commercial (CIC)
  • Hana Bank Co., Ltd. (formerly KEB Hana Bank)

State-owned Commercial Banks

  • Agricultural Bank of China (ABC)

Receiving agencies

Private Sector

  • SK Battery America, Inc. (SKBA)

Loan desecription

BOC and ABC contribution to $280 million USD syndicated loan to SK Battery America for Electric Vehicle Battery Plant Project in the United States

Interest type•Unknown

Narrative

Full Description

Project narrative

In or around August 2023, a syndicate of five banks—including Bank of China (BOC) and the Seoul branch of the Agricultural Bank of China (ABC)—provided a $280 million USD syndicated loan facility to SK Battery America, Inc.—a Delaware-incorporated electric vehicle (EV) battery manufacturer and wholly-owned subsidiary of SK On, a global EV battery manufacturer and arm of the SK Group—for the Electric Vehicle Battery Plant Project. SK Group, based in Seoul, is South Korea’s second-largest conglomerate. The proceeds of this loan were used finance capital expenditures relating to the construction SK Battery's Georgia lithium-ion EV battery manufacturing sites. ABC's contribution is captured by Record ID#106240, and BOC's contribution is captured by Record ID#106241. SK Battery operates two EV battery manufacturing plants in Commerce, Georgia. The first 9.8GWH, 2.4 million-square-foot plant commenced construction in in spring 2019 with project completion scheduled for spring 2020. The second 11.7GWH plant began construction in July 2020. Since 2019, the company has invested a total of $2.6 billion to build EV battery plants in Commerce, Georgia, creating 2,600 high-skilled jobs. In January 2024, one of SKBA's Georgia plants was accused of six serious worker safety violations and one other-than-serious violation by the US Department of Labor, primarily related to potential unsafe exposures, lack of safety equipment, and lack of procedures in unsafe scenarios.

Staff comments

1. The transaction was led jointly by teams from both Singapore and New York. The deal was led primarily by partners Michael Neary and Jean Woo and was supported by Matthias Goh, Jake Sng, and Nathan Huynh. Ashurst, a global law firm, represented the lenders. Ashurst has also represented the bookrunners and joint mandated lead arrangers on a $450 million USD syndicated green loan to SK Battery America, Inc. in 2020, for the Georgia plant projects without Chinese lenders. 2. The individual contributions of the six lenders to this $280 million USD syndicated loan are unknown. AidData has assumed each lender has contributed equally. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed an equal amount ($46,666,666.67 USD) to the loan syndicate.