ANNOUNCEMENT 19 Dec 2013In December 2013, the government of Republic of Korea announced a change in its trade finance instruments.
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The Export-Import Bank of Korea press release: Korea Eximbank to Finance Saudi Thermal Power Project with USD 1.23 Billion
Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=8&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16947
Korean ExImBank information on Export Credit and under export related loans:
On 19 December 2013 the Export-Import Bank (Eximbank) of Korea signed a Project Finance Loan Agreement totalling USD 1.23 billion with the Saudi Electricity Company (SEC). The loan will finance the Jeddah South Thermal Power Plant project. Korean Hyundai Heavy Industries was exclusively awarded the tender to construct the plant by SEC, which includes its design, engineering, procurement, construction, and testing.
In this context the Bank stated: 'Korea Eximbank contributed greatly to the awarding of the contract to Hyundai Heavy Industries by issuing a Letter of Intent (L/I) to finance the project in 2012 August, early in its bidding stage, in an effort to support the entry of Korean companies in the Middle Eastern power generation market.'
The ExImBank of Korea provides various financial instruments, including Project Finance Loans, 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.