Providing $241 Million in Financing
On December 19, the Export-Import Bank of Korea announced that it will provide a total of 241 million dollars (approximately 356.439 billion won) in financing for the Yona solar power project in Guam, which was awarded to Korea Electric Power Corporation, Korea East-West Power, and Samsung C&T.
This financial support package consists of a 150 million dollar project financing (PF) loan and a 91 million dollar equity bridge loan (EBL) for shareholder support. It is tailored to facilitate the overseas expansion of Korean companies.
The project involves the construction and operation of a 132MW solar power plant and a 325MWh battery energy storage system (BESS) in the Yona region of Guam. The expected annual power generation is 222GWh, which exceeds the combined average annual electricity consumption of 20,000 households in Guam (211GWh).
The total project cost exceeds 500 million dollars, and approximately 200,000 solar panels will be installed on a 2.5 million square meter site, equivalent to the size of 360 soccer fields. Upon completion, the total power generation capacity led by Korean companies in Guam will increase from the current 258MW to 390MW, surpassing half (55%) of Guam’s total generation capacity (708MW). With this financial support from the Export-Import Bank of Korea, Korean companies are expected to grow into key players in Guam’s power market.
The Guam Power Authority (GPA), the project owner, commissioned this project as part of its renewable energy expansion program and plans to purchase all the electricity produced from this project for 25 years.
The Export-Import Bank of Korea contributed significantly to the contract award by enhancing the financial competitiveness of Korean companies from the early stages of bidding, including the issuance of letters of interest. Korean companies will lead every aspect of the project, holding 100% equity, as well as overseeing engineering, procurement, and construction (EPC, by Samsung C&T), and operations and maintenance (O&M).
A representative from the Export-Import Bank of Korea stated, "This project required significant financial support from the bank, as it allows Korean companies to lead the entire process and maximize the creation of national wealth. We will continue to actively support Korean companies in winning eco-friendly energy projects such as solar and offshore wind power, thereby contributing to global carbon neutrality and climate crisis response."
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