SK Innovation said it has secured an 800 billion won ($650 million) green loan to expand its investments in electric vehicle batteries.

The company said it secured the funds through several financial organizations, including the Korea Development Bank, KEB Hana Bank and Bank of America, without giving further details. 



A green loan is a new lending activity aimed at making sustainable investments and reducing the impact on the environment with lower interest rates.

SK Innovation said the funds would be used for its EV battery plants being built in the US and Hungary, as well as battery separator plants in Poland.

The term of the guarantee is three to five years and it varies based on the completion of the construction of plants. 

By Shin Ji-hye (shinjh@heraldcorp.com)