Export-Import Bank Opens First 'Credit Line' in Middle East in Jordan

$130 Million Syndicated Loan with Jordan Housing Trade Bank

On the afternoon of the 22nd (local time), the Export-Import Bank signed a basic agreement for a $130 million syndicated loan with Housing Bank for Trade and Finance (HBTF) in Amman, Jordan. From the left in the photo are Visit Kyu, President of the Export-Import Bank, and Ammar Bashir Al-Safadi, President of the bank. Photo by Visit Kyu

[Asia Economy Reporter Kim Jin-ho] The Export-Import Bank of Korea announced on the 23rd that it has signed a basic agreement for a $130 million on-lending facility with Housing Bank for Trade and Finance (HBTF) in Amman, the capital of Jordan.

On-lending finance refers to the Export-Import Bank of Korea setting up a credit line with banks located in major export and investment target countries and lending funds to them, after which those banks provide loans to local companies trading with Korean firms. This has the advantage of enabling financial support even in regions without local branches.

The bank focused on Jordan as a logistics hub in the Middle East. To increase the regional market share of key export products such as automobiles and home appliances and to support Korean companies in securing reconstruction projects in Iraq, it established the Middle East's first credit line with HBTF, Jordan's leading commercial bank. HBTF has the largest branch network in Jordan and operates numerous networks in neighboring countries such as Iraq and Syria.

At the signing ceremony held on the 22nd (local time), President Bang stated, “It was necessary to open a credit line in Jordan, a financial and logistics hub, to overcome sluggish exports to the Middle East and to secure infrastructure reconstruction projects in Iraq,” and emphasized, “We will do our best to ensure contract success for our companies through timely financial support.”

Representatives of Korean companies operating locally, including Hyundai Motor Company, Samsung Electronics, and LG Chem, which are expected to expand exports through the credit line, also attended the signing ceremony and expressed great expectations for utilizing the Export-Import Bank’s on-lending finance.

Meanwhile, following the agreement ceremony, President Bang met with Prime Minister Al-Khasawneh and Minister of Energy and Mineral Resources Hala Zawati, emphasizing the high competitiveness of Korean companies in Jordan’s actively promoted renewable energy projects and expressing the Export-Import Bank’s willingness to provide proactive financial support. Jordan, a non-oil-producing country in the Middle East, plans to increase the share of renewable energy to 31% by 2030 to enhance energy security.