Taeyoung Construction Forms 280 Billion KRW PF Investment Fund with KTB Securities

Taeyoung Construction, which had been caught up in bankruptcy rumors, has formed a fund worth 280 billion KRW with Korea Investment & Securities to finance project finance (PF) sites. This is similar to the 1.5 trillion KRW fund created by Lotte Construction and Meritz Securities.

On the 3rd, Taeyoung Construction announced that it signed an agreement with Korea Investment & Securities for a financial procurement product called the ‘Taeyoung Construction Co., Ltd. · Korea Investment & Securities Co., Ltd. Investment Partnership Project.’ The fund was created with Taeyoung Construction contributing 80 billion KRW and Korea Investment & Securities contributing 200 billion KRW. The funds will be used to provide the necessary capital for Taeyoung Construction to smoothly carry out its PF projects.

In addition to forming this fund, Taeyoung Construction has been steadily succeeding in large-scale financing and quickly securing liquidity. Last month, it issued 30 billion KRW worth of privately placed bonds with a 3-year maturity using credit guarantee fund-backed securities (P-CBO) from the Korea Credit Guarantee Fund. It also issued privately placed bonds worth 100 billion KRW.

In January, its parent company TY Holdings received a capital injection of 400 billion KRW borrowed from the global private equity fund (PEF) Kohlberg Kravis Roberts (KKR). This means that a total liquidity of 800 billion KRW has been secured so far to ensure stable funding for PF projects.

A Taeyoung Construction official said, "As the capital market has tightened significantly, we have been focusing on strengthening our finances since last year to respond to potential liquidity issues in the future. Smooth financing is underway, and based on this, the stability of the ongoing projects is also being secured."