LG Display signed a 20 billion yuan Syndicated Loan contract with China Construction Bank, China Transportation Bank, China Agricultural Bank, and China Bank.
Syndicated Loan is available for large-scale financing with loans from many financial institutions that lend a certain amount under common conditions.
On December 5, LG Display agreed to provide funds for LG Display's Guangzhou OLED production corporation while LG Display CFO Kim Sang-don and related people attended the signing ceremony.
Through this contract, LG Display's Guangzhou OLED production company will be able to secure funds that are needed for facility investments in competitive interest rate levels for 8 years from Chinese banks.
"We are planning to quickly increase competitive edge of large OLEDs by preparing successful production of LG Display's OLED business in Guangzhou," said CFO Kim Sang-don of LG Display.
Meanwhile according to a market research company IHS, demand for panels for OLED TVs is expected to grow to 7 million in 2020 and to more than 10 million afterwards.