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Ssangyong Completes Financing Scheme for Pusan Tunnel Project
2000-08-09
Ssangyong Engineering & Construction Co., Ltd. said yesterday that it signed an agreement with four financial institutions to finance the remaining 73 billion won of the 146.7 billion-won project to build 2.33km twin tunnels in downtown Pusan.
The four are Cho Hung Bank, Hanvit Bank, Pusan Bank and Kyobo Life Insurance Co., Ltd.
Previously, Ssangyong has raised 73.7 billion won - its own equity of 53.7 billion won and 20 billion in financial support by Pusan City.
Under the agreement, Cho Hung and Hanvit, two underwriters, will provide 21.5 billion won each, while Pusan Bank and Kyobo will provide 15 billion won respectively.
The agreement also calls for the repayment in installment over eight years after a five-year grace period.
The two-way four-lane tunnel-building project was launched in November, 1997, to link Kaya-dong, Chin-gu to Chwachon-dong, Tong-gu in Pusan as an extension of the existing No. 3 Metropolitan Highway. The intra-city highway serves as a key transport road for container cargo, while linking Seoul-Pusan Expressway with Namhae Expressway.
According to Ssangyong officials, the tunnel will be completed for the opening in August, next year, serving 70,000 cars per day.
A joint company, sep up by Ssangyong and Bando, will manage and operate the twin tunnels.