Purchases US$280 Mil. Building from Amazon
The global investment banking unit of Shinhan Financial Group signed a US$280 million fulfillment center purchase deal with Amazon on Dec. 22.
The unit and IGIS Asset Management formed a consortium and purchased the center Amazon is building in New Mexico. The construction will be completed in September 2021 and Amazon will lease it for at least 20 years and up to 45 years.
In the deal, Shinhan Bank arranged a senior loan of US$188 million and Shinhan Investment Corp. covered US$93 million in mezzanine and equity financing. They are planning on resale by public offering.
The deal is the first direct fulfillment center investment between Amazon and a South Korean financial company. Shinhan Financial Group and Amazon have maintained a close relationship since October 2017, when Shinhan Financial Group chairman Cho Yong-byoung visited the Amazon HQ.