Samsung Borrows $16 Billion From Display Unit to Fuel Investment

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Samsung Electronics Co. will borrow close to $16 billion from its display-making subsidiary to help it sustain a blistering pace of investment.

The Suwon-based electronics company signed a deal with Samsung Display Co. to borrow 20 trillion won at a 4.6% interest rate, the company said in a regulatory filing Tuesday. The loan matures Aug. 2025 and its purpose is to secure working capital, according to the filing. Samsung Electronics owns 85% of Samsung Display.