Inspire secures $1.6 bn for its luxury resort project in Incheon

Inspire Integrated Resort Co., a South Korean resort developer and 100% affiliate of US casino and gaming company Mohegan Gaming & Entertainment (MGE), said on Nov. 29 it has completed securing 1.8 trillion won ($1.6 billion) for its new luxury resort project in an international business district near Incheon International Airport, Korea. 

Dubbed Inspire Entertainment Resort, the project has attracted 1 trillion won through senior and subordinated loans from three Korean bookrunners, NH Investment & Securities Co., KB Investment & Securities Co. and Hana Financial Investment Co., and other anonymous underwriters.

Korean conglomerate Hanwha Group affiliate Hanwha Engineering & Construction Corp., responsible for building the resort, has committed a 100 billion won investment to the project by buying convertible subordinated bonds. Hanwha Hotels & Resorts Co. will be in charge of the hotel operation as a strategic partner.

With $575 million of equity capital, MGE will sign a deficiency agreement with Integrate to support up to $100 million cash in case of a financial shortfall of the project. The US gaming company is also arranging another deficiency agreement between Integrate and the two Hanwha affiliates to support loan interest. 

Aiming to open the resort in 2023, Inspire plans to use the 1.8 trillion won for the first phase of the project. Based in the International Business Complex III near the airport, the resort project's first phase will feature more than 1,100 five-star guest rooms, a 15,000 seat concert and sports arena, a foreigner-only casino with 150 table games and 700 other games, 19,000㎡ conference halls, a 70,000 m² theme park and other facilities such as a shopping mall and indoor pool space. With a 12% of construction process rate as of November, the four-phase project will cost around 6 trillion won, Inspire said.

The construction project initiated in May 2019, however, was delayed as the pandemic raised concerns over the global hospitality industry. Early this year, MGE requested the Ministry of Culture, Sports and Tourism of Korea to allow the postponing of the opening of the resort until 2023, a year later than its June 2022 plan. 

Write to A-young Yoon at youngmoney@hankyung.com
Jihyun Kim edited this article.