Cheonan Ilbong Park Development Project Secures 310 Billion KRW PF Financing

[Asia Economy Reporter Lim Jeong-su] A project financing (PF) fund of 310 billion KRW has been secured for the development project of Cheonan Ilbong Park. The Ilbong Park development project, which had sparked controversy due to opposition from environmental groups and residents, is expected to proceed in earnest.

According to the investment banking (IB) industry on the 12th, Ilbong Park Co., Ltd. and Hoban Construction recently raised 310 billion KRW in development funds. A special purpose company (SPC) established under the lead of Meritz Securities took over the loan and issued short-term bonds backed by these assets to secure PF funds.

The project operator, Ilbong Park, plans to build and sell apartment complexes and neighborhood living facilities with a total floor area of 293,372㎡ on a land area of 117,676㎡ located at 462-16 Yonggok-dong, Dongnam-gu, Cheonan-si, Chungcheongnam-do. This project involves acquiring an existing private park site and developing part of the land.

The procured funds will be used for land compensation payments and construction costs. The loan is to be repaid in a lump sum at maturity, but early repayment of part or all of the loan is also possible. Hoban Construction will be responsible for construction, with plans to start construction and sales in December this year and complete the project in 2024.

During the funding process, Meritz Securities provided a private bond underwriting commitment worth 280 billion KRW. This means that if the SPC faces liquidity shortages due to project delays, Meritz Securities will provide up to 280 billion KRW in funds to repay the short-term bonds.

This content was produced with the assistance of AI translation services.