The Export-Import Bank of Korea (Korea Eximbank) hosted a round table conference on the “2012 Global Capital Market Outlook and Innovative Funding Strategy” on February 22 in Hong Kong.

Representatives of 13 global investment banks, including BNP Paribas, Deutsche Bank, Goldman Sachs, and JP Morgan attended the conference to discuss recent trends and forecasts in international financial markets and ways to utilize Middle East “oil money” for large-scale projects.

The conference follows the conference held in September 2011. The conference will be held regularly for communication with international financial markets to facilitate raising of foreign currency funds as an export credit agency (ECA) to support Korean firms advancing to overseas markets.

Recently, international financial markets are regaining stability with positive economic indicators in the U.S. and agreement on rescue measures for Greece.

Accordingly, market trends are rapidly changing as international funds such as European investment funds return to the market.

The conference was hosted to strengthen communication with international financial markets and check the condition of foreign currency loan markets in its plan to raise USD 11 billion of foreign currency funds.

In particular, representatives discussed strategies for financial cooperation in large-scale projects such as those ordered in Saudi Arabia, Qatar, and UAE with the inflow of oil money.

As timely provision of large funds are essential for winning large-scale projects, Korea Eximbank discussed joint financing with global investment banks and sought ways to use Middle East Sovereign Wealth Funds (SWF) as a source of financing for projects of Korean firms.

The presenter of the first session was Mr. Maezio Keiling, the head of Deutsche Bank Asia, who stated, “There is a high possibility that Europe will be highly volatile and a hard landing of China’s economy may also stir things up in the international financial markets.”

The second presenter, Mr. Ranobir Mukherji, the head of Bank of America-Merrill Lynch in Asia, commented, “It is unlikely that current issues in international financial markets will be resolved quickly. Markets should be watched constantly and issuances should be carried out whenever conditions become favorable. While continuing to focus on traditional dollar markets, we should adopt flexible borrowing strategies to target niche markets with relatively more liquidity."

In response, Dr. Yong Hwan Kim, chairman and president of Korea Eximbank, stated, “The role of Asian financial institutions in the Middle Eastern regions increased as the funding ability of European banks decreased. Korea Eximbank will fully utilize its networks with Middle Eastern financial institutions and global commercial banks to support Korean firms with advanced technologies."

On the 15th, Korea Eximbank formed a regular consultative group with Chinese and Japanese banks* to utilize their funding capacities for overseas project orders. In April, the Bank will host the MENA Conference 2012, inviting the major sponsors and financial institutions of the Middle East, a region which accounts for over 50% of Korean overseas plant orders.

* Chinese Banks: Industry and Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China, and China Bank of Communications; Japanese Banks: Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi, and Mizuho Corporate Bank

In January, Korea Eximbank successfully issued a record USD 2.25 billion global bond, alleviating geopolitical worries of the Korean peninsula and establishing a solid foundation for other Korean institutions for foreign currency borrowings.