Deal with Global Banks
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.”