Autos News

Hyundai seeks $331 million credit for Russia plant

SEOUL (Reuters) - Hyundai Motor Co 005380.KS, South Korea's top carmaker, is seeking to borrow 250 million euros ($331.3 million) to finance a new plant in Russia, company officials said on Monday.

Hyundai, the world's No.5 car maker along with its affiliate Kia Motors Corp 000270.KS, started building its St Petersburg factory June last year with an investment of 330 million euros.

“We visited some banks to discuss financing the Russia plant. But nothing has been decided yet,” the official told Reuters, asking not to be identified as he was not authorized to speak to the media.

The plant had originally been planned to launch in January 2011, with production of 100,000 units by the end of 2011.

But in January, Hyundai Chief Financial Officer Chung Tae-hwan said the company would slow down construction of the Russian factory and had decided to put its investment plans in Brazil on hold in the face of the worst industry downturn in decades.

Hyundai sent out a request for financing proposals for about 250 million euros to more than 10 banks earlier this month for its upcoming manufacturing plant in Russia, Reuters Basis Point reported last week.

Basis Point said a mandate for the prospective issue is expected in May.

Hyundai shares fell 1.5 percent to 65,700 won as of 0340 GMT, compared with a 1.16 percent fall in the wider market .KS11.

($1=.7546 Euro)

Reporting by Cheon Jong-woo; Editing by Chris Lewis