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K-sure extends USD 620 million export credit to DSME for a giant drilling facility project in Africa

Writer: Admin
Date: 2015-11-29
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Korea Trade Insurance Corporation (president Kim Young-hak, www.ksure.or.kr, K-sure) extends a "huge export credit backing", taking lead to help the shipbuilding industry escape the current slump, secure growth engines in emerging markets, and support trade expansion.
K-sure announced on November 29th, 2015 that it is offering USD 620 million in export credit for a giant drilling facilities building project by Daewoo Shipbuilding & Marine Engineering Co. Ltd. (DSME).

The project contract volume exceeding USD 1.2 billion involves DSME exporting two high-value deep-sea oil drilling units to be located in African offshore with their delivery expected in early 2016.○ Jointly financed by GEIK of Norway, the Korean export credit agency (ECA) is to offer USD 620 million in MLT export credit.* Export Credit Agency (ECA) : Policy-based insurance institutions offering export credit in the form of policy based insurance and guarantee for the goal of boosting the competitiveness of domestic exporters for those export transactions that cannot be financed by commercial banks.

The support by K-sure this time for DSME is meaningful that it helps the Korean shipbuilding industry that is competing well in emerging markets despite global difficulties. Particularly, this financial support will be granted early next year in time for DSME's delivery at which time a huge payment amounting to USD 1 billion would be required. Aside from this support, K-sure is reviewing additional USD 200 million backing for a new project by DSME during this year, strengthening support for the domestic shipbuilding industry currently struggling in a severe industry downturn.

President Kim Young-hak of K-sure said that this support by K-sure is expected to offer DSME substantial help as the backing supplies liquidity in the form of invoice payment upon delivery, rather than credit backing by financial institutions. He added that this export transaction is expected to signal the revival of Korean shipyards, the shipbuilding industry and eventually exports as it is a significant achievement by the Korean shipyard and shipbuilding industry amid a serious downturn in the project market, especially in an unknown emerging market.

※ K-sure (president Kim Young-hak) announced on November 30, 2015 that it is offering USD 620 million in export credit support for the building of two oil drilling units by DSME. The picture shows a facility similar to the ones that DSME is currently building.

Source : https://www.ksure.or.kr/en/customer/cstmr_notice_v.do?pageNum=1&pageSize=10&bltnScrpNo=474221