Shinhan Financial Group Sells Stake in US Amazon Logistics Warehouse

[Asia Economy Reporter Park Soyeon] Shinhan Financial Group has initiated the sale of its stake in the Amazon logistics center in the United States.

On the 4th, Shinhan Financial Group announced, "Shinhan Bank and Shinhan Investment Corp. are in the process of selling their stakes invested in the development of the Amazon logistics center in New Mexico, USA. Shinhan REITs Management and Aegis Asset Management are participating in this bidding process and are currently conducting due diligence."

Last year, Shinhan Financial Group formed a consortium with Aegis Asset Management to purchase the logistics center that Amazon is constructing in New Mexico. From the center's completion in September this year, it will be leased long-term to Amazon for a minimum of 20 years up to a maximum of 45 years.

Of the total investment amount of $280 million (approximately 310 billion KRW), Shinhan Bank arranged a senior loan worth $188 million (approximately 210 billion KRW). Shinhan Bank directly lent $33 million (approximately 37 billion KRW), and the remaining $155 million (approximately 170 billion KRW) was arranged by bringing in other financial institutions.

Shinhan Investment Corp. fully underwrote $93 million (approximately 100 billion KRW) through convertible bonds (CB) and bonds with warrants (BW). Full underwriting means that when a client company issues new shares, the financial institution acting as the lead manager purchases all those shares or bonds under its own name.

A Shinhan Financial Group official stated, "We plan to sell only the senior loan receivables, and among Shinhan Alpha REITs and Aegis Asset Management, who are currently negotiating the sale, we will select the party offering the better price."