The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Kim Yong-hwan, “Korea Eximbank”) announced on November 5 that it signed Memoranda of Understanding (MOUs) for increased cooperation in third-country projects with three French organizations that occupy key positions in development finance, the oil industry, and commercial banking.

Korea Eximbank Chairman Kim Yong-hwan, as a member of President Park Geun-hye’s economic mission, arrived in France on November 4 and signed MOUs with French development finance institution Proparco, oil major Total S.A., and commercial bank Societe Generale.

The MOUs with these organizations are meant to establish a solid foundation for the participation of Korean companies and financial institutions in overseas projects by constructing a comprehensive network in Europe.

The MOUs, which pave the way for co-financing and other forms of cooperation between Korea Eximbank and the French entities, are expected to generate greater opportunities for Korean companies and financial institutions seeking participation in infrastructure and oil projects in developing countries, where the French entities have built up extensive networks.

Chairman Kim met with Proparco CEO Claude Periou at Proparco’s headquarters in Paris and signed the MOU for cooperation including joint financial support for infrastructure projects in developing countries, inter alia, those in Africa and Asia.

Charirman Kim said at the signing ceremony, “By establishing a long-term cooperative relationship with the French development finance agency, we shall be in a better position to promote the participation of French and Korean companies in infrastructure projects in Asian and African developing countries, where high growth potential has not been matched by adequate financing. In particular, we are expecting a significant increase in the number of Korean companies participating in power plant, renewable energy, railway, and water treatment projects in those markets.”

Korea Eximbank and Proparco have teamed up before, jointly providing USD 280 million (Korea Eximbank: USD 230 million) in financing to Jordan’s Al-Qatrana Combined Cycle Gas and Steam Turbine Power Plant project (total project cost: USD 460 million) in August 2009.

The two institutions are currently discussing a plan to co-finance Nepal’s Upper Trishuli-1 Hydroelectric Power Plant project, a USD 600 million deal.

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