Brookfield selects KB to arrange $8bn Korean AI infrastructure loan
Brookfield has selected KB Kookmin Bank to lead a KRW10.7tn syndicated loan to finance AI computing infrastructure for Naver, in what would be South Korea’s largest syndicated loan, according to a report by Bloomberg.
Brookfield has chosen KB Kookmin Bank to organize a KRW10.7tn ($8bn) syndicated loan for the purpose of financing AI computing infrastructure for Naver, marking what would be South Korea's largest syndicated loan, according to Bloomberg. This financing will support a KRW12.6tn project that involves purchasing graphics processing units and other computing infrastructure through a Brookfield-managed special purpose entity.
The equipment will subsequently be leased to Naver Cloud under a long-term agreement. The loan's interest rate could potentially fall within the high 5% range, although discussions are still ongoing and terms might undergo modifications.
In addition to Brookfield, Shinhan Bank, Woori Bank, Hana Bank, and NH Investment & Securities have confirmed their involvement in the transaction. The deal signifies South Korea's first substantial GPU financing, as financial institutions and private credit managers increase their engagement with the hardware that underpins AI infrastructure.
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