NH Investment & Securities, Mega Office PF Loan Securitization Along Cheonggyecheon Stream

[Asia Economy Reporter Lim Jeong-su] NH Investment & Securities securitized the project financing (PF) loan it executed for the construction of a mega office building within the Supyo Urban Environment Improvement Project area along Cheonggyecheon in Jung-gu, Seoul. It is known that NH Investment & Securities held some of the senior and mezzanine loans at the time of raising the 255 billion KRW PF loan in December last year and recently resold (selldown) them.

According to the investment banking (IB) industry on the 11th, NH Investment & Securities recently securitized a 40 billion KRW loan it provided to the special purpose vehicle Twin Works PFV, with Samsung Securities as the lead manager. The PF loan was transferred to a special purpose company (SPC) and securitized bonds of the same amount were issued based on it. The loans transferred by NH Investment & Securities to the SPC consisted of 16 billion KRW in senior loans and 24 billion KRW in mezzanine loans.

Twin Works PFV is a corporation established for the mega office building development project being promoted in the Supyo Urban Environment Improvement Project area along Cheonggyecheon in Ipjeong-dong, Jung-gu, Seoul.

Twin Works PFV plans to construct a mega office building with five basement floors and 24 above-ground floors, totaling a gross floor area of 117,813 square meters in the project area. It is similar in scale to the Gwanghwamun Seoul Finance Center (SFC) building and forms a skyline together with the Mirae Asset Center One Building, which has a gross floor area of 168,001 square meters and is also located along Cheonggyecheon. Nearby, in the Sewoon Maintenance Promotion District, Daewoo Construction's new headquarters, Eulji Twin Tower, has been established.

Twin Works PFV received a 255 billion KRW PF loan from a consortium led by NH Investment & Securities in December last year. The loan was executed in tranches according to collateral and repayment priority: 175 billion KRW senior loan, 60 billion KRW mezzanine loan, and 20 billion KRW junior loan. An IB industry official stated, "NH Investment & Securities acquired and held some of the loans at the end of last year and recently resold them through securitization."