Woori Bank Completes KRW 2.6 Trillion Senior Acquisition Financing for SK Innovation Subsidiaries

A Customized Structure Combining Term Loans and Reserve Credit Lines
Emphasizing the Practice of "Productive Finance"

On October 27, Woori Bank announced that it had successfully completed the arrangement of a senior acquisition financing package worth 2.6 trillion won, acting as the lead arranger for the capital raising required for new investments by Narae Energy Service and Yeoju Energy Service, the LNG power generation subsidiaries of SK Innovation. The total capital raising required amounted to 3 trillion won.

This financing arrangement marked the largest acquisition financing transaction executed in 2025. It is particularly significant as Woori Bank played a pivotal role in facilitating large-scale funding during the SK Group’s business portfolio restructuring process.

The targets of this transaction, Narae Energy Service and Yeoju Energy Service, are key national infrastructure companies supplying electricity to approximately 150,000 households in the Seoul metropolitan area. Woori Bank supported the issuance of convertible preferred shares (CPS) totaling 3 trillion won by the two companies, providing 2.6 trillion won in acquisition financing and thus serving as a bridge connecting private capital to energy infrastructure directly impacting the daily lives of citizens.

Woori Bank designed the funding structure in two tranches to secure both stability and flexibility. The core of the structure combines a 2.4 trillion won term loan with a 200 billion won revolving credit facility (RCF). The term loan provides large-scale funding, while the RCF offers a reserve of capital that can be freely accessed as needed, ensuring both a robust funding pipeline and an emergency alternative route.

In particular, this acquisition financing is evaluated as having secured repayment stability through the strong cash flow-an aggregate EBITDA of 470 billion won in 2024-and a low loan-to-value ratio of approximately 40% generated by high-quality LNG power plants in Wirye, Hanam, and Yeoju. In addition, Woori Bank established financial covenants to ensure stable operations and implemented various protective clauses to safeguard the recovery of investment, providing a comprehensive safety net.

This successful multi-trillion-won arrangement is seen as further evidence of the outstanding capabilities of Woori Bank’s investment banking group. The group has consistently achieved double-digit arrangement performance every year over the past three years by closing major deals in the market. Furthermore, leveraging group synergies with Woori Investment & Securities, the bank has established an execution system that enhances both the speed and completeness of large-scale, complex transactions.

A Woori Bank representative stated, "This arrangement is part of our commitment to grow alongside the nation’s key industries by providing large-scale funding in a stable manner and designing a robust financial structure that can respond flexibly to emergencies." The representative added, "We will continue to faithfully fulfill our role in providing productive finance that supports the real economy."