Linklaters advises SMBC on its JPY 70.3bn green loan financing for the first gigafactory project in Japan

Linklaters advises Sumitomo Mitsui Banking Corporation (SMBC), as sole mandated lead arranger and lender, on its JPY 70.3 billion green loan to AESC Ibaraki Co., Ltd., a wholly-owned subsidiary of AESC Group. This loan is based on the Green Finance Framework (the Framework) formulated by AESC Group.

AESC Group is a leading manufacturer specialising in the development, production, and sales of lithium-ion batteries mainly for use in electric vehicles and energy storage. The funds raised from this transaction will be used for the construction and expansion of an electric vehicle battery manufacturing plant among the eligibility criteria set forth in the Framework. Batteries produced by the plant will be supplied to a number of carmakers in Japan.

The Linklaters team was led by Tokyo-based energy & infrastructure partners Hirofumi Taba and Ilia Ditiatev, supported by counsel Mamoru Ikeda and Daniel Senger. Associates Kentaro Okamoto, Eugene Loh, Nana Shioiri, Ryosuke Azuma and Yuri Watanabe also provided invaluable support.

Energy & infrastructure partner Hirofumi Taba commented:

“Congratulations to all parties involved for achieving successful financial close on the first gigafactory project in Japan. We are grateful for the continued trust and confidence that clients placed in us. EVs are key to the decarbonisation of the mobility sector, we are excited to leverage our comprehensive expertise across the entire EV lifecycle to continue supporting clients in future endeavours.”