ANNOUNCEMENT 11 Apr 2014In April 2014, the government of Republic of Korea announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, press release: Korea Eximbank to Finance Oman Oil Refinery Expansion Project with USD 600 million
Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=4&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16983
Korean ExImBank information on Export Credit and under export related loans:
On 11 April 2014 the Export-Import Bank (ExImBank) of Korea annouched that it will provide USD 600 million (a USD 420 million Direct Loan and a USD 180 million Guarantee) to finance an oil-refinery expansion project in Sohar, Oman. The Oman Oil Refineries and Petroleum Industries Company (ORPIC) is the developer of the project. In the backdrop of the Bank's financial contribution, ORPIC awarded the project tender to Korean company Daelim in a joint consortium with UK's Petrofac. The project's total cost is estimated at USD 2.7 billion.
In this context the Bank explained: 'ORPIC invited tenders for the project on a 'financing-first, award-later' basis, with a view to attracting the participation of Korean ECAs. Korea Eximbank promptly responded by issuing a Letter of Intent (L/I) to finance the project early in the EPC bidding process, decisively contributing to the awarding of the project to Daelim.'
A similar loan for a project in Oman was granted in February 2016, see related measure.
The ExImBank of Korea provides various financial instruments on favorable 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.
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.