AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 2 February 2016, the Export-Import Bank (Eximbank) of Korea announced approving a USD 370 million loan in project financing for a petrochemical project in Liwa, Oman. In this context the government of Oman will underwrite the Debt Service Undertaking (i.e. a guarantee for the completion of the project and the repayment of this loan) as well as guarantee the supply of natural gas, on behalf of the Oman Oil Refineries and Petroleum Industries Company SAOC.
This project aims to build a petrochemical plant and herafter process natural gas. The project financing loan was granted in connection with Korean companies being awarded tenders for the project.
The Eximbank of Korea has in the past also provided project financing for other projects in Oman, see related measure.
In this context an official from the Eximbank of Korea stated: ' Korean companies were successfully awarded the project contracts at a time when the environment of project markets has been deteriorated as Korea Eximbank took the lead in the financing negotiation utilizing its overseas network and expertise in project finance. ... This project financing deal is expected to act as a driving force for subsequent projects to be implemented smoothly contributing to increasing business opportunities for Korean companies to win more contracts in overseas markets.'
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.
Project financing loans include preferential terms such as repayments being mainly made from the project's cash flow generation and secured on the basis of the project's assets alone. As such the loan agreement is tied to the project's finances and not the company in question.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
Affected trading partners are identified based on UN Comtrade's import data from 2014.
⚑ Please report this page in case you detect an inaccuracy in its content.