S. Korea’s Eximbank forms consultative body with Chinese banks

South Korea’s state-run Export- Import Bank of Korea (Eximbank) said Wednesday that it has signed an agreement to form a consultative group with five Chinese banks in a bid to help local firms win large overseas projects.

Under the agreement, the state-run trade bank and five Chinese banks will hold a regular consultative meeting every three months to discuss co-financing for South Korean companies’ big overseas projects in areas such as shipbuilding, plant construction and mergers and acquisitions (M&A), according to an e-mailed statement sent by the Eximbank.

The five Chinese banks include the Industrial and Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China and Bank of Communications. The South Korean trade bank signed a memorandum of understanding (MOU) with the five banks.

“With the launch of the consultative body, we are discussing with the Chinese banks for the first time about co-financing our companies win big overseas projects such as massive shipbuilding,” said an official at the Eximbank.

Financing became an important factor to win overseas projects as more than 80 percent of overseas projects were valued at over 500 million U.S. dollars, according to the trade bank.

Meanwhile, the Eximbank planned to form a similar consultative group with three Japanese banks on Feb. 20. The three banks include the Sumitomo Mitsui Banking Corporation (SMBC), Bank of Tokyo-Mitsubishi UFC (BTMU) and Mizuho Corporate Bank.

Source: xinhuanet.com/english