A 1-trillion-won project to build a large-sized LNG power plant in Pyeongtaek in Gyeonggi Province is gaining a rapid influx of money from major institutional investors.
Thus far, this project has had difficulty in raising funds but the situation reversed after newly elected South Korean President Moon Jae-in ordered to stop the operations of obsolete coal-fueled power plants.
According to industry sources on May 24, Kookmin Bank, a lead manager for project financing of the New Pyeongtaek LNG power plant, completed the process of selecting institutional investors who will take part in the 885-billion-won investment and is set to sign a formal investment deal with them on May 29.
The fund needed to complete the construction of the 940-megawatt LNG combined-cycle power plant is estimated at 1.02 trillion won. Of the total, 180 billion won will be financed through an equity investment and 840 billion won through first-lien and subordinate-lien loans. Financial investors will also take a 45-billion-won stake through participation in a fund worth 145 billion won created by KB Asset Management.