KB Financial units invest $103 mn in Spain hotel portfolio-backed debt
Nov 05, 2018 (Gmt+09:00)
Macquarie eyes its 1st Korean data center valued around $722 mn
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
SK Inc. in talks to sell Pharmteco’s US CDMO plant to Novo Nordisk
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
S.Korea's LS Materials set to boost earnings ahead of IPO process
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
Galaxy Ring, new foldables set to steal the show at Samsung Unpacked Paris
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
POSCO gears up for carbon-free steelmaking with hydrogen
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
KB Asset Management Co. Ltd. and other units of South Korea’s top banking group KB Financial Group co-invested 90 million euros ($103 million) in a senior debt against a portfolio of 16 hotels across Spain in October.
The debt is part of 512 million euros raised by a US-based investment company in senior debts against the hotels, according to investment banking sources. The unidentified investment company owns the portfolio.
The two-year loan can be extended by another three years and expected to provide an annual average rate of around 4% to KB Asset and its affiliate companies.
KB Asset launched a domestic vehicle to invest 70 million euros in the debt, to which KB Insurance Co. Ltd. and other unidentified affiliates committed capital.
Separately, the London branch of Kookmin Bank, a key unit of KB Financial, directly invested 20 million euros in the secured debt.
The hotels consist of global chains such as Ritz-Carlton and Hilton and local European brands located in big cities and tourist destinations across Spain, including Madrid, Valencia, Canary Islands and Catalonia.
The co-investment by KB Financial’s units underscored a recent trend among South Korean financial services companies to make collective commitments to global funds so that they can become a key limited partner and source a better-yielding investment opportunity.
By Daehun Kim
daepun@hankyung.com
Photo: Getty Images Bank
Yeonhee Kim edited this article
-
Pension fundsKorea’s military fund taps ex-president of Woori Financial as CIO
Jun 28, 2024 (Gmt+09:00)
-
-
Pension fundsKorea's NPS CIO talks with GPIF, GIC execs on asset allocation
Jun 24, 2024 (Gmt+09:00)
-
Foreign exchangeKorea FX authorities, NPS raise currency swap limit to $50 bn
Jun 21, 2024 (Gmt+09:00)
-
Private equityAffirma Capital seeks to sell entire stake in both SeAH FS, S&G Holdings
Jun 20, 2024 (Gmt+09:00)