Hyundai has secured a US$1.35bn term loan package from a group of international banks and Korea’s export credit agency, helping fund the company’s first electric vehicle (EV) plant in the US.

The untied facility, which comes with a 10-year tenor, is backed with 95% cover from Korea Trade Insurance Corporation (K-Sure).

Proceeds will be used to construct an EV facility capable of producing 300,000 vehicles annually, and which is part of a wider US$7.6bn manufacturing complex in the US state of Georgia.

ANZ acts as export credit agency and green loan coordinator, mandated lead arranger (MLA) and bookrunner, and is contributing US$250mn towards the loan package, a spokesperson for the bank says.

HSBC is providing US$250mn and Citi US$200mn, while other participating lenders include Bank of America, BNP Paribas, CaixaBank, ING, JP Morgan, Société Générale and Standard Chartered.

The loan is “low risk, capital-efficient and high-returning” and will help Hyundai as it “strives to become a global leader” in EV manufacturing, says Aaron Ross, ANZ’s global head of project, export and asset finance.

According to the Australian bank, the deal adheres to the Loan Market Association’s Green Loan Principles.

The EV facility is part of Hyundai’s wider push to open a so-called “metaplant” in Savannah, Georgia, where the company will produce batteries and electric cars. Production is due to begin in late 2024.

Hyundai has frequently tapped the export finance market in recent years, as the firm works to grow its EV portfolio.

In 2023, the firm secured a US$940mn deal – backed by K-Sure – to develop a parts factory within the Georgia complex, and the year before closed a US$711mn deal with the Korean agency for a battery plant in Indonesia.