The Export-Import Bank Facilitates Financial Support for Middle East’s Prosperity
The Export-Import Bank of Korea (referred to as ‘Mercury’) has announced its commitment to providing financial assistance amounting to $1 billion in PF mode for the Qatar ethylene machinery construction project, awarded to Samsung Engineering (referred to as ‘Samn’). This project, which is Qatar’s largest petrochemical initiative in over 10 years, carries a total cost of approximately $7.3 billion.
PF, or Project Finance, is a financial technique that utilizes the project’s cash flow as the primary source of funds for repayment of principal and interest, with assets and project rights serving as collateral to provide loans.
Qatar, the world’s leading exporter of liquefied natural gas (LNG) from 2022, is actively diversifying its industrial structure by investing in the petrochemical industry, aiming to decrease its dependence on energy resources such as natural gas.
Samn, in collaboration with Taiwan’s CTCI, secured a $2.5 billion order for an ethylene production facility package. Samn’s share of this order amounts to approximately $1.3 billion, with the participation of around 40 domestic small and medium-sized companies.
Mercury, which has maintained a favorable relationship with Qatar Energy since its support of the Qatar Barzan gas processing project in 2011, expressed its intention to provide financial support from the initial bidding stage. This support has contributed significantly to Korean companies’ successes in winning large-scale projects in the Middle East.
An Eximbank official stated, “We anticipate that this financial support will further strengthen economic cooperation between the government of Qatar and Qatar Energy, while contributing to the realization of our national policy goal of achieving $50 billion in annual foreign construction orders by 2027, positioning Korea as one of the world’s top four powers.”
To date, Mercury has provided approximately $160 billion in financing to the Middle East, including $39.7 billion to Saudi Arabia, $35.4 billion to the UAE, and $13 billion to Qatar. Key clients, such as Saudi Aramco and UAE ADNOC, have received $6 billion each, and a $5 billion F./A. Framework Agreement has also been signed.
In the future, Mercury aims to actively support Korean companies’ participation in environmentally friendly energy projects, such as smart cities, green hydrogen, and ammonia, in the Middle East.
For more information, please visit the Export-Import Bank of Korea’s official website.
The Export-Import Bank provides general financial support to spread the Middle East’s new prosperity
□ The Export-Import Bank of Korea (www.koreaexim.go.kr, President Hee-seong Yoon, hereinafter referred to as ‘Mercury’) announced that it will provide a total of USD 1 billion in PF* mode to the Qatar ethylene machinery construction project awarded by Samsung Engineering (hereafter referred to as ‘Samn’) Announced on the 26th.
* PF (Project Finance): Corporate finance provides loans based on the company’s credit, while PF uses the project’s cash flow as the main source of funds for repayment of principal and interest, and provides loans using assets and project rights as collateral Financial techniques of provision
□ This project is the largest petrochemical project ever promoted by Qatar Energy*, a state-owned Qatari company, in the country for over 10 years, with a total project cost of approximately $7.3 billion.
* A 100% state-owned oil and gas company owned by the Qatari government, it oversees all energy-related business activities, including crude oil and gas.
ㅇ Qatar is the world’s largest exporter of liquefied natural gas (LNG) from 2022, and is pursuing investment in the petrochemical industry to diversify the current industrial structure that focuses on energy such as natural gas.
□ Samen formed a consortium with Taiwan’s CTCI in January this year and won a $2.5 billion order for an ethylene production facility package, known as the rice of the petrochemical industry.
ㅇ Of these, Samyen’s share is about $1.3 billion, and about 40 domestic small and medium-sized companies are supposed to participate in this project.
□ Mercury has maintained a friendly relationship with Qatar Energy since its support of the Qatar Barzan* gas processing project in 2011, and expressed its intention to provide financial support from the project’s bid stage, contributing to the Korean company’s success in winning large-scale projects big in the Middle East.
* Barzan gas processing business: A business that produces power generation fuel and petrochemical products by refining natural gas produced in the North Field gas field in Qatar.
□ An official from the Eximbank said, “We expect that economic cooperation with the government of Qatar and Qatar Energy will be further strengthened through this financial support.”
ㅇ “The Bank of Practice will provide overall support to spread the Middle East’s new prosperity and achieve the government’s policy goal of “achieving $50 billion in annual foreign construction orders by 2027 and becoming one of the world’s top four powers,” he said. .
□ To date Mercury has provided approximately $160 billion worth of financing to the Middle East, including Saudi Arabia’s $39.7 billion, the UAE’s $35.4 billion, and Qatar’s $13 billion, and $6 billion each to Saudi Aramco and UAE ADNOC , key clients, and signed a $5 billion F. /A*.
* Framework Agreement (Basic Credit Agreement): After confirming the support conditions in advance, such as the limit amount of financial support and support procedures, for high-quality foreign order companies, foreign business orders and joint ventures of the Korean company subject to individual support providing funding quickly
□ Mercury plans to provide active financial support to enable Korean companies to participate in environmentally friendly energy projects such as smart cities, green hydrogen, and ammonia that will be conducted in the Middle East in the future.
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