Samsung C&T Signs Financial Support MOU with Five Major Banks
for Apgujeong District 2, the Largest Project Ever
Samsung C&T Engineering & Construction Group (hereafter Samsung C&T) announced on May 30 that it has formed a strategic partnership with the five major domestic commercial banks to secure project funding and ensure the swift progress of the Apgujeong District 2 project, ahead of the selection of the construction company.
A large advertisement for Samsung C&T is displayed at Apgujeong Station on Line 3 ahead of the selection of the construction company for Apgujeong District 2. Photo by Jinju Han
The agreement includes financial institutions such as KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank. Typically, memorandums of understanding (MOUs) for reconstruction projects are signed one-on-one between individual banks and construction companies, but in this case, Samsung C&T and the major commercial banks have taken the unusual step of signing a joint agreement.
The five banks are expected to provide project financing (PF), including essential project loans, relocation loans, and interim payment loans for the Apgujeong District 2 reconstruction project. They will also offer consulting on fundraising and act as financial arrangers.
Apgujeong District 2 is a massive project, with the estimated value of existing assets owned by union members alone exceeding 10 trillion won. The total project cost is expected to be the largest ever among all urban redevelopment projects to date. Financial conditions, including interest rates related to project funding and relocation loans, are expected to be key factors for the project's success.
Samsung C&T plans to provide the best possible financial terms for Apgujeong District 2, leveraging its AA+ credit rating?the highest among the top 10 construction companies in Korea?and its solid financial soundness.
Kim Myungseok, Head of the Housing Business Division (Executive Vice President) at Samsung C&T, stated, "Apgujeong District 2 is a symbolic project that will elevate the standard of residential living in Korea to a world-class level." He emphasized, "Through this business agreement, we plan to secure project funding for Apgujeong District 2 under the most stable and competitive conditions."
Samsung C&T also plans to expand its collaboration in the future with major securities firms, including Samsung Securities, KB Securities, Woori Investment & Securities, NH Investment & Securities, and Kiwoom Securities.
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