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On 27 May 2013, the two government entities Export-Import Bank (Eximbank) of Korea and Korea Trade Insurance Corporation (K-Sure) announced project financing for the Sabine Pass LNG project. The Sabine Pass project involves building and operating an LNG terminallocated in the Gulf of Mexico in the State of Louisiana, United States. The project value is USD 8.9 billion.
The Korean Eximbank and K-Sure will provide USD 750 million each in project financing for the Sabine Pass LNG plant project. The assumption of risk on the part of the Eximbank and K-Sure allows seven private Korean banks to participate in financing the Sabine Passporject.
The Korean commercial banks Industrial Bank of Korea, Kookmin Bank, Nonghyup Bank, Shinhan Bank, Woori Bank, and Hana Bank are co-financing the project. The Eximbank of Korea and K-Sure will in this context provide loan guarantees and insurance for these Korean commercial banks.
The Eximbank of Korea stated in a press release: 'Backed by Korea Eximbank's loan guarantees, these commercial banks will be able to receive payment as senior creditors after a seven-year period. By offering loan guarantees and senior creditor status to these lenders, the government-mandated financial institutions enabled domestic commercial banks to participate in an overseas project financing deal for practically the first time.'
The Eximbank of Korea and K-Sure again financed the project in July 2015, see related measure.
The ExImBank of Korea provides various financial instruments on favourable terms to support specific Korean companies' business activities abroad. The terms and conditions vary depending on the loan or guarantees' purpose. More information on such loans and guarantees can be found on the Bank's website under Official Export Credit as well as under export related loans / guarantees.
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