Success partner for your global takeoff,
The Global Network of Korea Eximbank.

How to enlarge/reduce the letter size

Enlarge the screen : Please press and hold ctrl key and press + key additionally to enlarge it. Shrink the screen : Please press and hold ctrl key and press - key additionally to reduce it.

E-Mail this

Did you find useful information at KEXIM?
Recommend the information you see now to anyone you want to share with.
After entering the following details, you can share contents by clicking "SEND"

@
@
EXIM

Korea Exim News

USD 620 Million in Project Financing Provided for Investment Development Project in Singapore

Date 2011.04.19 View 28202
□ Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim) announced on March 7 that the Bank will provide USD 620 million in project financing to support the construction of petrochemical facilities and its operation (total project amount USD 2.5 billion) by the SK Group in Singapore.

□ This project, the largest project ever promoted by a Korean company in Singapore, will entail the construction and operation of a petrochemical plant capable of producing 4.5 million tons of petrochemical products annually within the 550,000m2 Jurong complex by the SK Group in collaboration with EDBI Singapore.

? Given that Singapore is one of the world’s top three hubs for oil refining and trading, and geographically located between China, the largest consumer of petrochemicals, and the Middle East, a major oil-producing region, the country is regarded to have high competitiveness in terms of logistics.

* World’s top 3 hubs for oil trading: New York, London, and Singapore

□ Through its subsidiaries, the SK Group will participate in the entire process of the “investment development project” including participation in the EPC contract, capital injection, supply of raw materials, product purchase, and plant operation after the completion of construction. In doing so, the SK Group will alleviate the problem of under-pricing contracts due to intense competition and will pioneer a new high value-added overseas business model which would lead to high operating returns and long-term dividends.

□ The project was in danger of being scrapped due to the global financial crisis in 2008 but was saved through active financial advisory services provided by Korea Eximbank last year. Korea Eximbank advised the SK Group to become the largest shareholder of the project and to improve the business structure to receive large-scale international financing.

□ In addition, Korea Eximbank was also accredited for having played a pivotal role in the participation of the SK Group in this overseas investment development project as the Bank provided a 15-year, long-term loan and successfully attracted the participation of 11 international commercial banks including ING, SCB, ANZ, etc.

□ An official from Korea Eximbank stated, “The Bank plans to actively provide competitive medium- and long-term financing and arrange international commercial financing as stable financing is crucial for Korean companies to implement high-value overseas investment development projects.”

□ Financial assistance for this project is hoped to serve as a springboard for Korean companies to increase participation in large-scale overseas projects in Asia and beyond.