This loan is trade financing to domestic commercial banks in the form of rediscounting trade bills once discounted by the commercial banks for exporters. The program was introduced to provide commercial banks with foreign currency for their short-term export credit.
With its top-tier reputation in project finance, the Bank invests in partially or wholly Korean-owned companies at home and abroad to support the activities of Korean companies in the global market. The Bank also makes capital contributions to domestic/international funds to facilitate the export of goods and services and overseas projects of Korean investors.
- Advantages of Korea Eximbank's Equity Investment
- As an export credit agency with strong ties to host country governments, the Bank has the resources to mitigate political risks in countries where Korean firms operate.
- With the Bank's equity participation, Korean investors may achieve greater certainty and feasibility of projects, which enables the Korean investors to gain a competitive advantage in the bidding process of projects.
- The Bank's investment encourages the participation of commercial banks as senior lenders since its involvement increases the chances of successful project implementation and ensures the soundness and profitability of projects.
What is Direct Equity Investment?
The Bank provides equity investment in companies where Korean investors hold at least a 10 percent share throughout the loan life to undertake overseas projects.
- KOREA-EXIM
- Korean Exporter
- Foreign Importer / Government
Terms & Conditions
| Eligible Transactions |
- Projects for which the Bank provides loans or financial guarantees
- Projects in which Korean investors directly or indirectly hold no less than 10 percent of the total outstanding equity shares throughout the loan life
- Projects in which the Bank is not the largest shareholder among Korean investors
- Projects that align with the Bank's policies such as supporting Korean firms conducting business overseas, etc.
|
| Investment Amount |
- No more than 15 percent of the total outstanding equity shares
|
| Type of Equity |
- Preferred share, ordinary share, etc.
|
| Currency |
- In KRW or a foreign currency
|
What are Contributions to Funds?
The Bank makes capital contributions to domestic and international funds which facilitate the development and acquisition of overseas resources that are strategically important to Korea.
Terms & Conditions
| Eligible Transactions |
- Funds that Korean entities or MDBs/ECAs invest in or operate jointly with the Bank
- Project funds that align with the Bank's policies such as supporting Korean firms conducting business overseas, etc.
|
| Investment Purpose |
- To facilitate the export of goods and services, overseas projects and natural resource development
- To strengthen the competitiveness of Korean companies in the global market
- To support the overseas operations of SMEs
- To help prevent climate change and preserve the global environment
|
| Investment Amount |
- No more than 25 percent of the total fund size
|
| Currency |
- In KRW or a foreign currency
|
What is Bond Financing?
When an eligible borrower under Article 18 of the Export-Import Bank of Korea Act raises funds through bond issuance, the Bank supports the borrower via subscription or guarantee of the bond.
Terms & Conditions
| Eligible Bond |
- Bond issued by an eligible borrower who raises funds through bond issuance instead of borrowing from the Bank
|
| Investment Amount |
- No more than the amount of eligible loan in connection with bond issuance
|
| Type of Bond |
- Corporate bond, commercial paper, etc.
|
| Currency |
- In KRW or a foreign currency
|
No comments:
Post a Comment