Gyeongnam Bank and BNK Capital Securitize Fund Beneficiary Certificates of 'Gangnam Platinum Tower'

[Asia Economy Reporter Lim Jeong-su] Kyongnam Bank and BNK Capital have securitized the beneficiary certificates of the fund that acquired the Gangnam Platinum Tower, which will be used as BNK Financial Group's Gangnam headquarters.

According to the investment banking (IB) industry on the 21st, Kyongnam Bank and BNK Capital securitized 25 billion KRW worth of beneficiary certificates of the ‘BNK Gangnam Core Office Specialized Private Real Estate Investment Trust (BNK Gangnam Core Office)’.

After selling the fund beneficiary certificates to a special purpose company (SPC) established by the affiliated securities firm BNK Investment & Securities, the SPC issued short-term bonds backed by these assets to raise funds.

The private fund BNK Gangnam Core Office, set up by BNK Asset Management, acquired the office building Gangnam Platinum Tower located at 398 Seocho-daero, Seocho-gu, Seoul, last November for approximately 350 billion KRW.

It is known that BNK Financial Group affiliates and NH Investment & Securities invested in the private fund. Among them, Kyongnam Bank and BNK Capital are believed to have sold their beneficiary certificates to the SPC to monetize their investment securities.

BNK Financial Group plans to relocate its affiliates scattered across the Gangnam area into the Platinum Tower and utilize it as one of Seoul's three major hubs along with the Yeouido BNK Financial Tower and the City Hall Station Geumsegi Building.