Wednesday, November 19, 2014

Financial Advisory & Structuring Services


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With the launch of the Financial Advisory & Structuring Department in July 2011, Korea Eximbank now provides a wide range of investment banking services includingproject development, financial advisory, financial arrangement, and equity participation for transactions or projects related to Korean firms’ export, overseas investment, natural resource development, and M&A of overseas companies.
We provide comprehensive financial packages for our clients in conjunction with respective loan departments. While loan departments provide financing as lenders, we provide financial services as a financial adviser (FA) or mandated lead arranger (MLA) in order to support the successful implementation of large-scale overseas projects.

Roles of FA and MLA

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Roles of Financial Advisers (FA)

  • Identify projects and develop effective bid strategies
  • Advise on establishment of joint ventures with local companies, tax issues, concession agreements, etc.
  • Assess bankability of project documents (project structure, project feasibility, etc.)
  • Formulate financing plans and financial models
  • Assist financial term negotiations, preparation of PIM, selection of MLAs

Roles of Mandated Lead Arrangers (MLA)

  • Revise financial models to reflect financing plans and structure appropriate sensitivity analyses
  • Assist the preparation of Information Memorandums and syndication of lenders including commercial banks
  • Assess financing requirements and assist in preparation of the final Term Sheet

Roles of FA and MLA at Each Stage

  • Project Development
  • Project Appraisal
  • Construction & Operation
  • Request for FA selection proposal (through bidding process): financial institutions with experience in relevant sectors
  • Proposal to sponsors: including team organization, track records, fees, financial models, etc.
  • Pre-Information Memorandum (PIM): conducted on technical, legal, insurance, market, environmental, and financial aspects (prepared by FA - for borrowers), Information Memorandum (IM): (prepared by MLA - for lenders)

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