Export-Import Bank Establishes $11 Billion Financial Network to Support Middle East Orders

Saudi Aramco and UAE ADNOC Receive $6 Billion and $5 Billion Respectively

[Asia Economy Reporter Jin-ho Kim] The Export-Import Bank of Korea (KEXIM) has signed basic credit agreements (F/A) worth a total of $11 billion with two Middle Eastern state-owned energy companies to expand overseas orders for Korean companies and participation in the hydrogen industry.

On the 19th, according to the financial sector, KEXIM President Bang Moon-kyu attended the Korea-Saudi Smart Innovation Growth Forum and signed a major shipbuilding agreement for a basic credit agreement worth $6 billion with Giad Mushed, CFO of Saudi state-owned oil company Aramco.

The basic credit agreement pre-establishes the financial support limit and support procedures for overseas clients, and once individual support transactions such as business orders for Korean companies occur, it provides financing promptly.

President Bang then met with Yasir Al-Rumayyan, Governor of the Saudi Public Investment Fund (PIF) and Chairman of Saudi Arabia's state-owned oil company, at the PIF headquarters to discuss cooperation plans between the two institutions for Saudi Arabia's new infrastructure investments, including smart city construction and renewable energy.

Earlier, on the 16th (local time), a basic credit agreement worth $5 billion was also signed with Sultan Al Jaber, CEO of the UAE Abu Dhabi National Oil Company (ADNOC).

Signing basic credit agreements consecutively with two major Middle Eastern state-owned energy companies is part of the "advance financing, follow-up orders" strategy. It is expected that Korean companies will secure a certain portion of orders through KEXIM's financial pre-support.

President Bang said, "In particular, since it includes preferential terms for the hydrogen and renewable energy sectors, we expect the creation of new markets in these fields."