Shinsegae E&C to raise $150M to address liquidity shortage concerns

The plan includes the issuance of 200 billion won in privately placed bonds. Of that, an external financial institution will acquire 140 billion won, while Shinsegae I&C, the group's IT division, will acquire 60 billion won, according to the FSS.

[SHINSEGAE E&C]

Shinsegae Engineering & Construction (E&C) is raising 200 billion won ($150 million) from its group and the financial sector to address liquidity shortage concerns.

The plan, approved at a board meeting on Thursday, includes the issuance of 200 billion won in privately placed bonds. Of that, an external financial institution will acquire 140 billion won, while Shinsegae I&C, the group's IT division, is set to acquire the remaining 60 billion won, according to a regulatory filing on the Financial Supervisory Service's electronic disclosure.

Additionally, the company will fortify funds with an additional 65 billion won from a merger of its affiliated resort expected in early February. This follows the board's resolution in November approving the merger of a resort near Youngrang lake in Sokcho, Gangwon.

With the recent funding, Shinsegae E&C now has liquidity exceeding the 20-billion-won guarantee debt, including for development projects, due in the first half of the year. The company added that discussions are ongoing for the extension of the maturity of guarantee debts for its major construction sites, anticipating a potential decrease in the overall scale of debt repayment.

"We'll ensure a robust fund acquisition to secure liquidity by exploring diverse avenues, including asset sales, should the need for additional funds arise," Shinsegae E&C said.

"We'll keep a close eye on Shinsegae E&C's liquidity and explore diverse support options, including potential group-level financial assistance, as needed," Shinsegae Group said.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]