Lee & Ko’s project finance team represented SK E&S on this project financing of the Oseong LNG combined cycle power plant project. The project involved a 833 MW LNG-fired combined cycle power plant located at Anwha-ri, Oseong-myon, PyungTaek, Gyonggi-do. The total project costs for the project is approximately Seven Hundred Forty Six Billion Korean Won (KRW746,000,000,000).
The financing documents for this deal, which was signed on June 21, 2010, contained numerous credit facilities including a senior, mezzanine, and subordinated credit facility. The firm was responsible for establishing the structure of the project financing, drafting and negotiating project contracts including the EPC contract, operation and maintenance agreement and the long-term service agreement, negotiating and finalizing the financing documents and addressing all other legal facets relating to the implementation of the project. Despite the substantial reduction in large-scale project financings in Korea recently which has undoubtedly been impacted by the global economy, this deal had no trouble attracting numerous big-name players including The Korea Development Bank and General Electric International Inc. due in part to the success of the K-Power Power Plant which is also owned by the SK Group.
This deal was led by Dong Eun Kim of Lee & Ko’s project finance team and handled by Hyun Chan Pyun and Kwang Yul Kim.