A representative from Korea Eximbank stated, “We have had several seminars targeting local financial authorities and investors and provided concrete data demonstrating Korea Eximbank’s contributions to infrastructure construction in Saudi Arabia. Thanks to such efforts over the last six months, the Bank became the first institution in Asia to be allowed to issue bonds in Saudi Arabia.”

* Korea Eximbank’s Financial Support for Projects in Saudi Arabia: USD 2.5 billion in 2009→USD 5 billion in 2010→USD 6.9 billion in Oct. 2011

Major bond investors include various institutions in Saudi Arabia such as government investment institutions (22%), commercial banks (60%), pension funds (10%), and others(4%).

In particular, financial institutions, which had worked with Korea Eximbank to co-finance projects in the Middle East participated by Korean companies, largely participated in the bond investment as they had naturally learned of the strong credit ratings of Korea and Korea Eximbank.

Based on Korea’s solid economic fundamentals, the recent conclusion of currency swaps with China and Japan, credit rating upgrades of Korea by Fitch, and Korea’s sound fiscal condition contributed to the successful bond issuance in the Middle East.

Korea Eximbank, in line with the policies of the Korean government, will strive to further tap into Middle Eastern capital markets beyond Saudi Arabia and into countries such as the UAE and Qatar.

Relatedly, the Bank is anticipated to record the largest annual foreign currency borrowing per institution in Korea as it successfully procured USD 10 billion this year, surpassing the year’s target amount of USD 8.8 billion.

Korea Eximbank also led the way for tapping into non-dollar niche markets in countries such as Japan, Switzerland, Brazil, etc. and secured various investment funds totaling USD 6.7 billion (67% of USD 10 billion) in non-dollar currencies.