The Export-Import Bank of Korea announced on May 15 that it will provide USD 180 billion in financing to GS Engineering and Construction Company Ltd. (GS E&C), which will acquire an overseas water treatment company for the first time among Korean firms.

GS E&C will acquire the Spanish water treatment firm Inima S.A.U. (Inima).

Established as the first Spanish water treatment company in 1957, Inima is a leading global company that has implemented 200 global projects in the water treatment industry including construction of a desalination plant, water supply pipelines, and a sewage treatment plant.

In particular, Inima has extensive experience from obtaining business concessions in private investment markets ranging from share acquisition to construction and operation of water treatment plants.

Accordingly, GS E&C’s acquisition is expected to add Inima’s project and brand competitiveness and accelerate the recent trend of privatization in overseas water treatment markets.

Korea Eximbank will provide USD 180 billion to GS E&C, or 53% of the USD 340 billion necessary for acquisition.

GS E&C will acquire an 80% stake of Inima through this M&A. The remaining 20% will be acquired by Korea’s National Pension Service’s Private Equity Fund.

The financial support is regarded as an outcome of the Bank’s efforts in forming close cooperative network with green industry (industries that promote sustainable growth and low carbon emissions) firms.

Since 2010, the Bank has actively supported overseas M&As by Korean firms through its “Green Pioneer Program.”

Korea Eximbank operates a localized support system for leading water treatment companies which encompasses forums promoting overseas advancement, project strategy meetings, and early identification of promising projects.

A representative of the Bank stated, “This M&A marks the beginning of Korea Eximbank support for participation by Korean firms in privately funded overseas water projects. Korea Eximbank will continue to strengthen its support for leading green firms and promote exports.”