Hanwha REITs Completes 770 Billion Won Refinancing

Published 29 Sep.2025 08:38(KST)

Hanwha REITs has completed refinancing worth approximately 770 billion won. The interest rate on Hanwha REITs’ borrowings has decreased by 99 basis points (1bp = 0.01%), and annual cash flow improvement of about 7.1 billion won is expected.

On September 29, Hanwha REITs announced that it had finalized refinancing of 421.6 billion won in loans for the Hanwha Building in Janggyo-dong on September 25. The Hanwha Building in Janggyo-dong is located just a two-minute walk from Euljiro 1-ga Station, a prime area in Seoul. With a 100% occupancy rate, this prime office building is used as the headquarters of Hanwha Group.

Hanwha REITs has completed refinancing for all its assets, including the Hanwha Building in Janggyo-dong. Considering the timing of interest rate cuts, the company increased the proportion of floating-rate loans from 50% to 70%, and dispersed the concentration of loan maturities originally set for 2027 by adjusting them to 60% in 2027 and 40% in 2028.

In July, Hanwha REITs issued secured bonds to repay collateralized loans for four Hanwha Life Insurance buildings (Nowon, Guri, Pyeongchon, and Jungdong). Based on its AA- credit rating, the company successfully issued 110 billion won in secured bonds.

The demand forecast attracted twice the target amount of funds. The bonds were issued at an interest rate of 2.97%, which was lower than the expected issuance rate.

In August, Hanwha REITs secured a stable borrowing structure by arranging collateralized loans from banks for 236.5 billion won in borrowings related to the Hanwha General Insurance Building, a prime office in Yeouido.

With the completion of refinancing, Hanwha REITs’ cash flow is expected to improve. As of the end of September 2024, Hanwha REITs’ estimated borrowing rate, which stood at 4.74%, is expected to decrease to about 3.75% after refinancing, resulting in an annual cash flow improvement of approximately 7.1 billion won.