KB Kookmin Bank has secured the mandate to arrange financing for an artificial intelligence (AI) computing infrastructure project worth about 12.6 trillion won being 추진ed by global alternative investment manager Brookfield. It will oversee arranging loans of about 10.7 trillion won under what it said is South Korea's first graphics processing unit (GPU) financing.

KB Kookmin Bank said on Nov. 1 it was selected as the lead arranger for Brookfield's AI computing infrastructure buildout project.

The project will secure AI computing infrastructure such as GPUs through a special purpose company (SPC) to be set up by Brookfield, and supply it to Naver Cloud under a long-term contract.

The total project size is about 12.6 trillion won. Of that, about 10.7 trillion won will be raised through loans. The funds will be used to acquire GPUs and related equipment and build infrastructure.

KB Kookmin Bank said the arrangement is South Korea's first GPU financing and the largest syndicated loan arrangement in the country to date.

A syndicated loan is a structure in which multiple financial institutions participate jointly to lend large sums. Major domestic banks and securities firms, including KB Kookmin Bank, will take part in the arrangement.

As lead arranger, KB Kookmin Bank handled the overall arrangement process, from designing the financial structure to negotiating key financial terms. It plans to support fundraising by setting up a structure that reflects the project's characteristics and the stage-by-stage investment schedule.

In particular, the project raises funds based on cash flows generated from long-term supply contracts for AI computing infrastructure. Financial institutions jointly provide funding for AI infrastructure projects that require large upfront investment.

KB Kookmin Bank said it will use the arrangement as an opportunity to expand financial support for advanced strategic industries such as AI and to work to revitalise productive finance.

A KB Kookmin Bank official said, "This arrangement is significant in that it has pioneered a new financial area as South Korea's first GPU financing," and added, "We will continue to contribute to strengthening the competitiveness of domestic industries."