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August 6, 2013
Developing Opportunities withDeveloping Opportunities withKorea Eximbank Korea Eximbank (KEXIM)(KEXIM)
June, 2011
Disclaimer
This presentation has been produced by The Export-Import Bank of Korea (“KEXIM”) solely for information purposes.
KEXIM does not make any representation or warranty as to the accuracy or completeness of this information.
This presentation is highly confidential and must not be copied, reproduced, published, distributed, transmitted, passed or otherwise disclosed (in whole or in part) to any other person at any time without prior consent from KEXIM. This presentation is only being made available to parties who hereby agree to treat it as confidential and not to disclose any information contained herein.
Table of Contents
SECTION 1 KEXIM at a Glance SECTION 1 KEXIM at a Glance 44
SECTION 2 SECTION 2 Finance Solutions Finance Solutions 99
SECTION 3 Recent KEXIM Supported Projects SECTION 3 Recent KEXIM Supported Projects 1919
SECTION 1
KEXIM at a Glance
5
§ Established in 1976 pursuant to the special act - the Export-Import Bank of Korea Act
§ Often functioning as government vehicle to remedy market failure
An Export Credit Agency mandated by Korean Government
to promote export competitiveness of
Korean goods and services
Specially Mandated Institution
§ The Government fully owns KEXIM’s capital directly and indirectly through other governmental arms
§ KEXIM’s Chairman & President is appointed by the President of Korea
§ Board of Directors and Auditor are appointed by the Government
100% owned by Government
Par with Sovereign Ratings
100% Ownership
Aa3 (Stable) A+ (Stable) AA-(Stable)
Republic of Korea
KEXIM at a GlanceKey ProfileKey Profile
5
66
KEXIM at a GlanceObjectivesObjectives
Arrange the best financing package to implement deals
Assist sponsors / investors achieve optimal financing terms under a bankable financing structure
Strengthen the bank’s role as the leading bank for global business providing a variety of financing tools
Collaborate with Multilateral Development Banks and ECAs to promote co-financing in emerging countries
Primary Objective of
KEXIM
Support Korean Exporters / Investors Conducting Overseas BusinessSupport Korean Exporters / Investors Conducting Overseas Business
Enhance Cooperative Ties with International InstitutionsEnhance Cooperative Ties with International Institutions
7
GovernmentGovernment--entrusted Fundsentrusted FundsKEXIMKEXIM’’s own Accounts own Account
Financial GuaranteeFinancial Guarantee
Project Related GuaranteeProject Related Guarantee
LOANS
Total Loans: KRW49tn(=U$44bn)(as of Dec 31, 2012)
Total Guarantees: KRW21tn(=U$19bn)(as of Dec 31, 2012)
Since 1987
Promote economic cooperation between Korea and developing countries
Total Loans: KRW3.8tn
Total Fund: KRW3.1tn
Since 1991
Promote exchanges and cooperation between the North and South Korea
Total Loans: KRW2.9tn
Total Fund: KRW11.3tn
On behalf of Korean Government, KEXIM administrates EDCF and IKCF, both of which are SEPARATED ACCOUNTS FROM KEXIMExport CreditExport Credit
Import CreditImport Credit
Overseas Business CreditOverseas Business Credit
Economic Development Cooperation Fund (“EDCF”)
Inter-Korean Cooperation Fund (“IKCF”)
Key OperationKey Operation
GUARANTEES
7
KEXIM at a Glance
Economic Development Cooperation Fund Economic Development Cooperation Fund ((““EDCFEDCF””))
InterInter--Korean Cooperation Fund (Korean Cooperation Fund (““IKCFIKCF””))
Economic Development Cooperation Fund Economic Development Cooperation Fund ((““EDCFEDCF””))
8
Since 1999, KEXIM has actively participated in global project finance market
Total 17,632
By Number of Projects
3,319Petrochemical
235Sewage Treatment
992Infrastructure
3,296Refinery
4,475Natural Resources Development
5,315Power & Water
By Commitment (USD in million) as of ’13. 1
Power & Water 20
Petrochemical 8
Refinery 7
Natural Resources Development 6
Sewage Treatment 1
Infrastructure 5
8
KEXIM at a Glance Project Finance ExperienceProject Finance Experience
SECTION 2
Finance Solutions
10
§ Borrower
§ Interest Rate
§ Premium
§ Repayment
§ Requirements
: Project Company*
: Libor based floating rate or
CIRR-based fixed rate
: Risk Premium subject to OECD
arrangements on Export
Credit
: Up to 14 years** (Project Finance)
: Korean Contents shall be at least
25% of export contract value
Export Contract
Financial Guarantee
Loan
KEXIM
Commercial Banks
Project Project CompanyCompany
Korean EPC Contractor
PROJECT FINANCE : EXPORT CREDIT
10
Export CreditExport CreditFinance Solutions
Direct Loan
11
§ Borrower
§ Interest Rate
§ Premium
§ Repayment
§ Security
§ Requirements
: Project Company
: Libor based floating rate or
comparable fixed rate
: Risk Premium to be applied
: Up to 30 years (door to door)
: Mortgage, Insurance, Project A/C,
Assignment of borrower’s right
under project contracts, etc.
: Korean Sponsor’s share retention- Completion: substantial portion
should be maintained - Repayment: at least 10%
Equity Injection
Loan
KEXIM
Commercial Banks
Project Project CompanyCompany
Korean Sponsor
PROJECT FINACE : OVERSEAS INVESTMENT CREDIT
Overseas Business CreditOverseas Business Credit
11
Finance Solutions
Direct Loan
Financial Guarantee
12
§ Borrower
§ Currency
§ Coverage
§ Interest Rate
§ Repayment
§ Security
: Korean companies planning to
invest overseas with more than 3
years of experience in the field
: A foreign currency or Korean Won
: Up to 80%
: Libor(or Swap) based floating rate
or comparable fixed rate
: Maximum 30-year repayment period
including 3-years grace period
:- Bank guarantee, pledge, mortgage
on the borrower’s local assets
- Loan on credit possible
Equity Injection
Loan
Equity
KEXIM
Korean Investor
ForeignForeignCompanyCompany
Foreign Investor
CORPORATE FINACE : OVERSEAS INVESTMENT CREDIT
Overseas Business CreditOverseas Business Credit
12
Finance Solutions
Re-lending
Re-lending
13
§ Borrower
§ Currency
§ Coverage
§ Interest Rate
§ Repayment
Term
§ Security
: Korean companies that conduct
overseas projects without establishing
a foreign company
: A foreign currency or Korean Won
: Up to 80%
: Libor(or Swap) based floating rate or
comparable fixed rate
: Maximum 30-years repayment period
including 3-year grace period
: - Bank guarantee, pledge, mortgage
on the borrower’s local assets
- Loan on credit possible
Loan
Conduct Project
KEXIM
Korean Investor
Overseas Overseas ProjectProject
Foreign Investor
CORPORATE FINACE : OVERSEAS PROJECT CREDIT
Overseas Business CreditOverseas Business Credit
13
Finance Solutions
ConductProject
14
§ Borrower
§ Currency
§ Coverage
§ Interest Rate
§ Repayment
Term
§ Security
: Foreign companies in which a
Korean company has an equity
share
: Basically a foreign currency
: Up to 100%
: Libor(or Swap) based floating rate or
comparable fixed rate
: Maximum 30-year repayment period
including 3-years grace period
- Loan on credit possible to creditworthy
borrowers
Equity
KEXIM
Korean Investor
CORPORATE FINACE : OVERSEAS BUSINESS CREDIT
Overseas Business CreditOverseas Business Credit
14
Finance Solutions
Direct Loan
ForeignForeignCompanyCompany
15
Trade Deals
Loan
Sub-Loan
KEXIM
Foreign Bank
ForeignForeignImporterImporter
Korean Exporter
INTERBANK EXPORT LOANS
Interbank Export LoansInterbank Export Loans
15
Finance SolutionsC
redi
t Li
ne
Classification Short-Term Long-Term
Eligible Transactions Commodities, Services
Financing Tenor Less than 2 years 2-10 years
Max. Financing Amount
100% of contract amount
85% of contract amount
Interest Rate
(Floating) Libor + spread
(Fixed) SWAP + spread
(Floating) Libor + spread
(Fixed) CIRR + exposure fee
RepaymentLump-sum or Equal
semi-annual installments
Equal semi-annual installments
16
KEXIM provides repayment protection (Financial Guarantee) for participants in the ECA covered commercial bank’s loan
KEXIM covers 100% of political and commercial riskComprehensive risk coverage during entire project life Comprehensive
Risk CoverageComprehensive Risk Coverage
Unconditional Guarantee
Unconditional Guarantee
Cover all of the principal and interest
Cover all of the principal and interest
Guarantee
Conditionality
Paid upon Request
Unconditional
Immediately
Coverage Ratio 100%
Insurance
Conditional(claim investigation preceded)
Within 2 months
90 ~ 100%
Local currency guarantee programIntroduced SAR Guarantee Program in the Saudi Jubail Refinery project to invite highly liquid local banks
Financial Guarantee
16
Financial GuaranteeFinancial GuaranteeFinance Solutions
SECTION 3
Recent KEXIM Supported Projects
18
Mong Duong IICoal-fired
Power Plant(Vietnam)
U$ 622 MillionSponsored by
Posco Power, AES,CIC
Uch II Gas-fired Power
Plant(Pakistan)
U$ 100 MillionSponsored by
International Power
Saudi Jubail
Refinery Plant(Saudi Arabia)
U$ 545 MillionSponsored by
Saudi Aramco, Total
Ma’aden FertilizerProject
(Saudi Arabia)
U$ 400 MillionSponsored by
Ma’aden, SABIC
Year 2011
Year 2010 Year 2008 ~ 09
18
EurasiaTunnel Project(Turkey)
U$ 280 MillionSponsored by SK E&C, YAPI,
Merkezi
Year 2012
Recent Supported Projects Recent projectsRecent projects
1919
Turkey Eurasia Tunnel ProjectTurkey Eurasia Tunnel ProjectCase Study 1
Outline of the Project
The business connecting the European and Asian continent by construction of underground tunnels in the underground of Bosphorus.
Structure
Korean Sponsor
Turkish Sponsor
Ministry of Transportation, Maritime and
Communications
Turkey Treasury
Project Company(ATAS)
K-EXIM
K-SURE
EPC contractor
(Sponsor JV)
O&M contractor
Implementation Contract
ICDADAA
Finance Agt
Shareholder Agt
EPC Contract
O&M Contract
Commercial Bank
EIB
EBRD
2020
Barzan Gas ProjectBarzan Gas ProjectCase Study 2
equityQatar
Qatar Petroleum
(93%)
Exxon Mobil (7%)100%
Equity investment
Acquisition of gas development & Royalty
Project Project CompanyCompany
Qatar Petroleum
(Gas)
Tasweeq (LPG)
Offtaker contract
Ras GasJGC(Onshore)
O &M contract
Lenders[ECA]
[Commercial]
Finance Agt
Prominent Sponsors – AA(QP) and AAA(EM) rated
Co-financing with the 34 international facilities
The largest amount of support from K-EXM : U$ 1bil
Outline of the Project Structure
EPC contract
Hyundai Heavy
Industries (Offshore)
