법무법인(유한) 율촌 | Yulchon LLC

Gaw Capital Partners, a Hong Kong-based multi-asset investment management firm, acquired a 100% stake in Korea Environmental Technology Co., Ltd. (Koentec), Korea's largest integrated waste management company, for approximately USD 500 million.

To finance the acquisition, a syndicate of 12 Korean financial institutions led by Woori Bank provided KRW 520 billion in acquisition financing through a three-tranche structure: senior secured term and working capital facilities arranged by Woori Bank, and a mezzanine facility arranged by Woori Investment Securities. The acquisition was executed through Tenacitas Co., Ltd., a Korean special purpose company established by Gaw Capital as the borrower.

This transaction marks the first major waste management infrastructure acquisition financing in Korea by an international private equity sponsor, establishing a precedent for future infrastructure sector financings in the Korean market. As a separate matter, Yulchon also acted as sole lead counsel to Gaw Capital, delivering integrated support within a competitive auction timetable.

The deal required structuring a multi-tranche facility with 12 lenders spanning banks, capital companies, and an asset management company participating through a private investment trust (with Industrial Bank of Korea acting as trustee), each with distinct risk profiles and documentation needs, requiring careful coordination of inter-creditor priority arrangements between senior and mezzanine lenders.

As a cross-border transaction with a Hong Kong-based sponsor operating through a Singapore intermediate holding company, Yulchon managed the full documentation suite in both Korean and English to accommodate the sponsor's international approval processes while ensuring compliance with Korean law security perfection requirements, including fixed date stamp procedures and physical share certificate endorsement across all 12 pledgees.