Lee & Ko advised a private fund managed by NH-Amundi Asset Management (“NH-Amundi”) on its mezzanine investment in the amount of KRW372million into a special purpose vehicle that (1) was established by the Korean Gas Corporation (“KOGAS”) and (2) purchased from KOGAS the right and entitlement to future cash flows from the infrastructure investment of KOGAS. Lee & Ko represented NH-Amundi’s fund from start to finish on this transaction, drafting all relevant transaction documents, including the share purchase agreement and shareholders’ agreement. Lee & Ko also participated in negotiation of cash flow purchase agreement between KOGAS and the special purpose vehicle.
This Project was the second instance ever where the existing equity interest held by a major Korean energy company in energy infrastructure assets located offshore was securitized through a Korean private fund. Lee & Ko set up an innovative structure that allowed Korean energy company to utilize future cash flow from its investments in energy infrastructure assets without negatively affecting its aggregate liabilities in its balance sheet.