On September 24, Ecopro held a board meeting and approved a plan to secure a total of 800 billion won in funding through a price return swap (PRS) contract, using 6,739,680 shares of Ecopro BM it owns as the underlying asset.
Ecopro plans to invest the secured cash in the IGIP (International Green Industrial Park) project, which is the second phase following the first-phase investment in Indonesia (IMIP, Indonesia Morowali Industrial Park). The project aims to establish an industrial complex in Sambalagi, Sulawesi, Indonesia, integrating processes from nickel smelting to precursor, cathode material, and battery cell production to enhance price competitiveness.
The IGIP project will first be promoted through the establishment of a joint venture, PT BNSI, with global companies including Indonesia’s state-owned PT Vale Indonesia. Ecopro will invest approximately 200 billion won from the newly raised funds to acquire a 19.99% stake in the joint venture. From subsequent investments onward, Ecopro will take the lead as the largest shareholder, driving the development of the industrial complex.
The securities firms that signed the PRS contract with Ecopro include Mirae Asset Securities and five others. The contract period is two years, with a fee rate in the 5% per annum range. Industry experts believe that this contract will not have a direct impact on the stock price. The securities firms that entered into the contract with Ecopro will be compensated for any losses if the share price of Ecopro BM falls below the contract reference price. Therefore, the likelihood of these shares being sold on the market in the short term is low.
Ecopro stated that it will complete the fundraising process through steps including board approval, signing contracts with securities firms, and receiving the proceeds from the sale.
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