How Standard Chartered Coordinated Landmark Green Financing

Standard Chartered has signed a €514m (US$587.6m) multi-export credit agency-backed green financing package for Easpring Finland New Materials Oy.

The financing looks set to fund construction of a facility that addresses supply chain resilience and battery value chain requirements.

The bank acted as Joint Green Loan Coordinator, Lead Arranger and Lender for the financing. Standard Chartered combined support from China Export & Credit Insurance Corporation (SINOSURE) and Finnish export credit agency Finnvera.

Standard Chartered provided financial solutions spanning capital flows, foreign exchange and cash management. Renminbi, the official currency of the People’s Republic of China, is supported in the investment structure.

European battery materials gap

Once complete, the facility will address a European supply chain gap for battery materials when completed, strengthening the resilience of the regional electric vehicle battery value chain.

Eleanor Weir, Executive Director, Development & Agency Finance at Standard Chartered, explains: "The energy transition will be shaped not only by the technologies we develop, but by our ability to build the industrial supply chains that support them.

"Easpring's investment in Finland represents an important step in strengthening Europe's battery materials ecosystem and creating the resilient supply chains needed for long-term sustainable growth."

The facility also stands to support the continent's energy transition, with Eleanor adding: "This transaction shows Standard Chartered at its best: connecting clients, capital and strategic partners across markets to deliver financing for projects that matter.

"The involvement of Finnvera and Sinosure also underlines the vital role export credit agencies can play in unlocking long-term capital for strategically important industrial projects."

Kotka facility production targets

It is expected that the Kotka facility will result in the creation of 270 permanent jobs once operational, boosting Finland's expanding battery ecosystem.

The plant is slated to manufacture 60,000 tonnes of cathode active material annually in its initial phase, with room for expansion to match Europe's rising demand.

The project could reinforce the continent's regional battery materials supply chain. The facility could drive electric vehicle market growth and speed transition to cleaner transportation.

Green Loan Principles verification

Standard Chartered collaborated with Easpring Finland New Materials Oy to verify the project's eligibility as a clean transportation initiative under the Green Loan Principles.

The bank guided the structuring of the financing to ensure compliance with international sustainability benchmarks including the IFC Performance Standards and Equator Principles.

The joint backing from SINOSURE and Finnvera bolstered lender confidence and made the financing package competitive by securing diversified funding options, favourable pricing and extended loan terms.