Deal with Global Banks

Marcus Hook Energy Center.
Marcus Hook Energy Center.

 

The KB Financial Group headquarters building
The KB Financial Group headquarters building

 

KB Financial Group said that its flagship unit KB Kookmin Bank has succeeded in jointly arranging a 750 billion won (US$656.46 million) project financing deal for a power plant in the United States with global banks.

On November 2, Starwood Energy Group, a U.S.-based energy infrastructure investment firm, acquired Marcus Hook Energy Center in Pennsylvania for US$800 million (914. Billion won). For the 790 megawatt gas-fired power plant construction, KB Kookmin Bank joined global banks including Mitsubishi UFG, Credit Agricole and ING Bank to garner investors who purchased senior debt worth US$660 million (754.05 billion won).

Of the amount, KB Kookmin Bank arranged US$200 million (228.5 billion won), which is comprised of the bank's direct investment of US$50 million (57.13 billion won) and US$150 million (171.38 billion won) from other domestic financial firms who joined a project fund set up by KB Asset Management such as KB Life Insurance, Mirae Asset Life Insurance, the National Credit Union Federation of Korea, Lotte Insurance and Hyundai Marine & Fire Insurance.

An official from KB Kookmin Bank said, “It is a meaningful case that KB Financial Group achieved a track record as a joint arranger in the global project financing market based on its experience and expertise in the domestic market. In particular, KB Asset Management established a project fund for domestic investors. KB Investment & Securities sold the fund, while KB Life Insurance invested in the fund. KB affiliates closely cooperated with each other as one team and it helped its success.”

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