SK Nexilis Co. Ltd., the world’s largest copper foil producer, today announced the establishment of its Malaysian
subsidiary’s (SK Nexilis Malaysia Sdn Bhd) first green syndicated term loan facility (Green Loan) in Malaysia to finance the construction cost of the company’s first overseas copper foil manufacturing facility in Kota Kinabalu Industrial Park (KKIP),
Sabah.
The RM2.3 billion manufacturing facility will have an annual production capacity of 50,000 tons which will increase the group’s global production capacity by two times. 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.
OCBC Bank (Malaysia) Berhad is the acting in its capacity as Green Loan Structuring Adviser, has played a pivotal role in structuring the Green Loan and advising on the underlying Green Financing Framework to adapt to SK Nexilis’ ESG objectives. The bank also acted as Mandated Lead Arranger, Facility and Security Agent, and joint lender, alongside AmInvestment Bank Berhad as Mandated Lead Arranger and AmBank (M) Berhad as the joint lender. Adhering to best practices, 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.
The group said the transaction reaffirms its commitment to sustainability and is aligned with the overarching sustainability objectives of its parent company, SKC Ltd, which is part of SK Group, one of the largest conglomerates in South Korea. SKC Co. Ltd earlier unveiled a group-wide initiative to achieve Net Zero by 2040 and RE100, which is an initiative to transition to 100% renewable energy utilisation in its operations, by 2050.
