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EcoPro Headquarters (Photo = EcoPro) |
[Alpha Biz= Kim Jisun] Seoul, September 24, 2025 – EcoPro announced that its board of directors has approved a plan to raise KRW 800 billion by leveraging its stake in subsidiary EcoPro BM through a price return swap (PRS) contract. The funds will be used to support EcoPro’s nickel smelting and battery materials project in Indonesia.
Under the plan, EcoPro will use 6,739,680 EcoPro BM shares as the underlying asset for the PRS. The company has signed agreements with six securities firms, including Mirae Asset Securities, with a two-year contract term and an annual fee rate of 5%.
What Is PRS?
A price return swap is a derivative contract in which gains or losses are settled based on the future performance of the underlying asset, in this case EcoPro BM shares.
If the share price rises at maturity, investors pay the gains to the company.
If the price falls, the company compensates investors for the losses.
Investors receive annual fees as compensation, ensuring a minimum return.
Funding Allocation
EcoPro stated that the proceeds will be directed to the International Green Industrial Park (IGIP) project in Sulawesi, Indonesia, following its initial investment in the Morowali Industrial Park (IMIP).
The IGIP project involves the creation of an integrated industrial complex encompassing nickel smelting, precursor materials, cathode materials, and battery cell production. It will be carried out through a joint venture, PT BNSI, established with partners including Indonesia’s state-owned PT Vale Indonesia and other global companies.
EcoPro plans to invest approximately KRW 200 billion of the raised funds to secure a 19.99% stake in the JV.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
