ANNOUNCEMENT 01 Jun 2017
On 1 June 2017, the Export-Import Bank of Korea (Korea Eximbank) announced providing funds together with the Korean governmental agency K-sure for the Coral South FLNG Project with Korean company participation.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, press release of 1 June 2017, Korea Eximbank·K-sure, KOGAS, and Samsung Heavy Industries collaborate on Coral South FLNG Project in Mozambique: https://www.koreaexim.go.kr/site/program/board/basicboard/view?menuid=002001007&pagesize=10&boardtypeid=284&boardid=56998
Information on the Korean Eximbank's Financial Products: https://www.koreaexim.go.kr/site/homepage/menu/viewMenu?menuid=002003001001001
The Korean Eximbank and K-sure provided a total value of USD 1 billion in project financing and USD 800 million respectively for the Coral South FLNG Project
The Coral South FLNG Project is a large gas field development project off the coast of Mozambique. The Korean company Korea Gas Corporation will participate as an investor having a 10% stake in the project, whilst Korean Samsung Heavy Industries (SHI) will participate in a consortium which has been awarded the ECP (Engineering, procurement, and construction) contract. In this context, SHI will build the FLNG facility in Korea. An FLNG facility is an "offshore LNG production facility enabled for pretreatment, liquefaction, storage and offloading of LNG".
In this context, the Korean Eximbank explained that "it is expected that the project will have an influence on employment expansion in Korea since SHI will build the vessel domestically with the participation of more than 1,000 Korean SMEs."
An official from the Korean Eximbank also stated: "We will further strengthen its leading role in promoting natural gas development and maritime plant projects for Korean companies."
Project Financing is provided to certain foreign large-scale projects. Repayments of such loans include preferential terms such as repayments mainly being made from the project’s own cash flow generation. Project financing loans are solely eligible for projects which include Korean companies participating as an exporter, sponsor or as an operations and maintenance contractor.
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.