Hoban Group Construction 'Cheonan Seonggeo Industrial Complex' 65 Billion PF

[Asia Economy Reporter Lim Jeong-su] A project financing (PF) worth 65 billion KRW has been secured for the construction of the Cheonan Seonggeo Industrial Complex. This industrial complex will be constructed by Hoban Group affiliates, including Hoban Group and Hoban Industry.

According to the investment banking (IB) industry on the 14th, Seonggeo Industrial Complex Project Corporation, a newly established entity for the purpose of implementation, received a PF loan of 65 billion KRW from a consortium of financial institutions. The PF was executed in two tiers according to repayment priority: 55 billion KRW as senior debt and 10 billion KRW as subordinated debt. Eugene Investment & Securities led the fundraising and gathered the consortium.

Seonggeo Industrial Complex Project Corporation plans to use the raised funds for the construction of the industrial complex. The project involves building and selling a general industrial complex on a 302,551㎡ (91,682 pyeong) site located at 14-17 Omok-ri, Seonggeo-eup, Cheonan-si, Chungcheongnam-do. The total project cost is reported to be approximately 76 billion KRW.

Hoban Construction and Hoban Industry, affiliates of Hoban Group, have been jointly selected as the contractors. Construction is scheduled to begin this month and complete by November next year. The two contractors have agreed with the consortium to ensure responsible completion within 24 months. If they fail to fulfill this agreement, the contractors will bear the PF debt on behalf of the project implementer.

The Seonggeo Industrial Complex project applied for industrial complex planning approval in May 2019, and after undergoing procedures such as the Chungcheongnam-do Industrial Complex Planning Review Committee’s deliberation in April last year, it received final approval on the 11th of this month. The main industries to be attracted to the industrial complex are expected to include wood and wood products, chemical products, primary metals, electronic components, telecommunications equipment, electrical equipment, automobiles, and trailers.