The Hungarian unit of South Korea’s Hankook Tire has signed a term loan agreement with eight banks to take out a syndicated five-year €100 million (Ft 26.5 billion) loan, KDB Bank Magyarország, acting as agent and the Hungarian unit of lead manager The Korea Development Bank announced on Tuesday.
The loan will be guaranteed by the Hankook Tire parent company. Co-arrangers of the loan include Woori Bank, Bayerishe Hypo und Vereinsbank AG's Hong Kong branch, Caylon Bank's Seoul branch, Hana Bank, Korea Exchange Bank (Germany), The National Agricultural Cooperative Federation, Mizuho Corporate Bank Limited and KDB Asia Limited. BNP Paribas Hungaria Bank and ING Bank (Hungary) act as senior managers.
Hankook's Hungarian unit is expected to use the loan to start building a Ft 132 billion tire factory in Dunaújváros, central Hungary. The plant is expected to start production in June 2007 and reach full capacity by 2010. The factory will initially employ 1,500 people.