This article was published on the ChosunBiz MoneyMove (MM) site at 5:44 p.m. on Dec. 3, 2025.
As the lender group moved to sell down acquisition financing for SK Innovation's purchase of 50% equity in the Boryung liquefied natural gas (LNG) terminal, demand surged and the allocation was reportedly exhausted in an instant.
The success of this acquisition financing sell-down is interpreted as meaning institutions rated the Boryung LNG terminal's investment appeal highly. It is a solid infrastructure asset with cash-generating capacity and relatively high interest rates, so lenders lined up.
According to the investment banking industry on the 4th, Shinhan Bank, NH Investment & Securities and Kiwoom Securities recently started the sell-down of acquisition financing for 50% equity in the Boryung LNG terminal.
Earlier on the 17th, an IMM Investment and KB Balhae Infra consortium agreed to acquire 49.9% of the Boryung LNG terminal held by SK Innovation and signed a share purchase agreement (SPA). The purchase price is about 560 billion won.
A total of 300 billion won will be raised through acquisition financing. The three arrangers will each take on 100 billion won. The interest rate was initially in the high 4% range but is said to have recently risen to the low 5% range.
An IB industry official said, "Project fund investors (LPs) want the sell-down allocation as well, and with Shinhan Bank and NH Investment & Securities' financial affiliates also waiting, there is little room for new institutions to enter."
Lenders note that the Boryung LNG terminal is an asset with stable cash flow. SK Innovation and GS affiliates have long-term use agreements (TUA) of more than 20 years. Last year's earnings before interest, taxes, depreciation and amortization (EBITDA) were about 180 billion won, and it recorded 91.4 billion won in the first half of this year.
An industry official explained, "As a long-term infrastructure asset with a healthy debt service coverage ratio (DSCR), a consensus on stability has already formed."
Another attractive element is that the interest rate is fairly high despite being a low-risk infrastructure asset. As rates have generally risen recently, the senior acquisition financing rate for the Boryung LNG terminal is said to have been adjusted to the low 5% range.
An IB industry official said, "The sale of equity in the Boryung LNG terminal was one of this year's most popular deals, and concentrated sell-down demand proves that," adding, "The IMM consortium aims to complete payment of the purchase price (closing) within the year."