Samsung to borrow over $15 billion from display unit for investment

Samsung Electronics plans to borrow more than $15 billion from its display-making subsidiary to secure operational costs, the company has said.

The South Korean tech giant said in a regulatory filing that it will borrow 20 trillion won ($15.78 billion) from Samsung Display at an interest rate of 4.6 per cent to “secure working capital.”

The loan matures August 16, 2025, and amounts to 10.35 per cent of Samsung Electronics’ equity capital as of at the end of 2021, reports Yonhap news agency.

Samsung Electronics holds an 85 percent stake in Samsung Display.

The move is widely interpreted as the world’s largest memory chip maker’s unwavering commitment to its investment drive,