[Funding] Daejeon Shinsegae, 150 Billion Private Bonds for 'Science Complex' Facility Funds

[Asia Economy Reporter Lim Jeong-su] Daejeon Shinsegae has raised 150 billion KRW to be used as facility funds for the 'Shinsegae Science Complex,' a landmark in Daejeon.

According to the investment banking (IB) industry on the 23rd, Daejeon Shinsegae recently issued a total of 150 billion KRW worth of private bonds to a special purpose company (SPC). The bonds were issued in installments according to maturity: 70 billion KRW for the 1-1st private bond, 30 billion KRW for the 1-2nd private bond, and 100 billion KRW for the 2nd private bond.

The SPC received a securitized loan (ABL) from KDB Industrial Bank up to a limit of 100 billion KRW to secure funds for purchasing the private bonds. The remaining 50 billion KRW was raised by issuing securitized commercial papers based on the principal and interest repayment resources of the 2nd private bonds.

Daejeon Shinsegae will use the raised funds as facility funds for the Shinsegae Science Complex, currently under development at 480 Daedeok-daero, Yuseong-gu, Daejeon, in the Expo Science Park area of Doryong-dong.

The Science Complex is a mixed-use shopping mall combining a department store, hotel, and scientific facilities, spanning from 5 basement floors to 43 above-ground floors, with a total building area of 279,263 square meters. The 193-meter-tall building will feature a rooftop garden and an observatory. Construction began in 2018, and it is scheduled to open this August.

Shinsegae is reported to have invested approximately 600 billion KRW in the Science Complex project with the ambition to create a new landmark in Daejeon.