The Export-Import Bank of Korea announced on June 7 that it will provide USD 300 million to Brazilian bank Banco Itau BBA for the export of a semi-submersible offshore drilling rig by Daewoo Shipbuilding and Marine Engineering Co. Ltd. (DSME) to Petroserv Ltd. (Petroserv) of Brazil.

The provision of USD 300 million represents the first case of support through co-financing under the Bank’s interbank export credit line*. Of the 300 million, Korea Eximbank will provide 165 million while the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) provides 135 million under a guarantee by Korea Eximbank.

* Financing provided to banks of importing countries so that local importers may obtain loans to purchase Korean goods

A representative of the Bank commented, “We actively sought funds from Japanese banks as they have high foreign currency liquidity and relatively lower interest rates compared to European counterparts.”

Success in securing financing from Japan is the result of close cooperation during the Bank’s regular consultative group meetings with Japanese banks, which were initiated in February, and speedy provision of advisory and consulting services.

In contrast with previous financing through direct loans to importers to support high-value added ship exports, co-financing with other banks is quickly becoming a new financing solution.

A representative of the Bank commented, “Financing of exports through local banks may become a new strategy to overcome limitations associated with direct loans, including importer credibility. We will actively assist Korean firms obtain the financing they need to export and advance overseas by utilizing our global network to identify co-financing opportunities with banks abroad.”