[Asia Economy Reporter Lim Jeong-su] Hanwha Construction has raised 120 billion KRW in project financing (PF) funds for the development of a residential lodging facility in Asan-si, Chungnam.
According to the investment banking (IB) industry on the 8th, Hanwha Construction secured a credit line loan of 120 billion KRW through Asan Baebang Development Co., Ltd., the development operator. The loan has a 5-year maturity with a lump-sum repayment condition at maturity. Korea Investment & Securities and others are reported to have participated as the main lenders.
The lender group was divided into senior loans of 100 billion KRW and subordinated loans of 20 billion KRW according to collateral and repayment priority. Hanwha Construction, responsible for construction, provided a completion guarantee agreement for the PF loan aiming to start construction in February next year. If approval for use is not obtained from local governments or others within 58 months after loan disbursement, the company bears the responsibility for loan repayment.
The raised funds will be used for the construction of the residential lodging facility project at 1733 Jangjae-ri, Baebang-eup, Asan-si, Chungnam. Asan Baebang Development is the project operator of this business, with Hanwha Construction holding a 70% stake. This project is being carried out through a managed land trust method by Koramco Asset Trust.
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