Shin & Kim’s attorneys, Sang-Hyun Lee and Hyun-Mi Cho, advised Woori Bank, the lead arranger, and Macquarie Bank, the financial advisor, of the Hanam-Misa collective energy project financing led by Ko-One Energy Service Co., Ltd., a subsidiary of SK E&S Co., Ltd.
The Hanm-Misa collective energy project involves the construction, maintenance and operation of a community energy plant (a combined heat & power plant) that generates electricity and heat from LNG. The electricity generated from the plant will be sold through the Korea Power Exchange (KPX), and the energy supply for heating and cooling will be provided to Hanam, the Misa Complex, the Gamil Complex, the Hyunan Complexes 1 and 2, and the Munjeong Complex. The generation capacity of the plant is 400MW, and the construction of the plant will be completed, and its commercial operation is scheduled to commence, in early 2015. The total project cost is approximately KRW 640 billion, of which the financing of KRW 616.4 billion, consisting of senior fixed-rate loans, senior variable-rate loans, subordinated loans, business stabilization loans, as well as corporate bonds, was arranged by Woori Bank.
Shin & Kim was involved in each stage of the project for the successful completion of the financing arrangement, including the loan documentation, negotiation, and documentation for the establishment of a development fund in the form of a private equity asset investment trust. As a result, the signing of the project finance agreements took place in January, 2013, and the initial withdrawal of the loan proceeds is scheduled to take place in the coming days.
