Deal converts construction loan as 950MW plant begins operations
Woori Financial Group headquarters (Photo courtesy of Woori Bank)
Woori Bank announced on May 1 that it has successfully completed arranging a refinancing of a total of $825 million (approximately 1.1 trillion won) to coincide with the commencement of commercial operation of a 950MW gas-fired combined-cycle power plant located in Trumbull County, Ohio, USA.
This project is a joint investment by Korea Southern Power Co., Ltd. (KOSPO), the Korea Overseas Infrastructure & Urban Development Corporation (KIND), and Siemens Energy. As the power plant began full-scale operation on April 15, Woori Bank led the financial arrangement to convert the existing construction phase loan into a long-term facility loan suitable for the operational phase.
The power plant is located in a key area of the PJM (Pennsylvania, New Jersey, Maryland Interconnection) market, the world’s largest electricity market, which is responsible for supplying power to 13 states in the Eastern and Midwestern United States. The bank is recognized for demonstrating its financing arrangement capabilities for a prime asset that promises stable returns, particularly as the region experiences a surge in electricity demand driven by the expansion of artificial intelligence (AI) and data centers.
Woori Bank had previously secured the mandate in 2022 when it first provided financial support for the project, raising a total of $150 million from domestic financial institutions. In this refinancing process, it successfully closed the deal by jointly underwriting, with KB Kookmin Bank, a total of $230 million in long-term facility loans and a credit line for working capital.
Lee Hae-yeon, Deputy General Manager of Woori Bank’s Infrastructure Finance Department, stated, “This financing arrangement is a significant achievement that solidifies our position in the North American energy market by providing timely funding aligned with the start of commercial operation,” adding, “Going forward, we will do our best as a financial partner that discovers global prime assets and supports the overseas expansion of domestic companies.”
Jung Suk-yee
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