HomeVietnamLG Innotek secures $200m from IFC for Vietnam expansion

LG Innotek secures $200m from IFC for Vietnam expansion

LG Innotek secures $200m from IFC for Vietnam expansion

LG Innotek announced on Wednesday that it has received $200 million in funding from the World Bank’s International Finance Corporation (IFC).

The company will use this money to expand its manufacturing facility in Haiphong, Vietnam.

The eight-year sustainability-linked loan is meant to encourage LG Innotek to improve its environmental, social, and governance (ESG) practices.

This is the first time a South Korean company has received this type of funding from the World Bank’s IFC. LG Innotek applied for the loan last year and got approval after a review.

Companies that achieve their ESG targets under the program can benefit from lower interest rates.

“We are pleased to have signed IFC’s first SLL with a Korean company through LG Innotek,” said Carsten Mueller, IFC’s regional industry director for manufacturing, agribusiness and services in Asia. “IFC will continue to strengthen cooperation with LG Innotek to promote sustainability.”

Park Ji-hwan, chief financial officer of LG Innotek, said the funding underscores the company’s long-term ESG commitment. “LG Innotek will continue to take the lead in ESG management and grow as a company that provides differentiated value to customers.”

In 2022, LG Innotek announced its plan to switch all of its electricity use at its operations to renewable energy by 2030 as part of the global RE100 initiative.

The company has also set a goal to become carbon neutral by 2040.

In 2024, LG Innotek switched nearly 60% of its worldwide electricity use, equivalent to 638 gigawatt-hours, to renewable energy.

That same year, its factories in Haiphong, Vietnam, and in Paju and Gumi, South Korea, achieved the RE100 renewable energy target.

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