Project Financing
Korea Development Bank (KDB) is seeking to enter the global project financing (PF) market in earnest, helping domestic firms to push into global markets. KDB Chairman Lee Dong-gul has been stressing the importance of global market expansion through overseas PF after taking office.
KDB announced on Apr. 20 that it has set up its PF project goal in the global market this year at US$1.7 billion (1.93 trillion won), up 25 percent from last year, and it will develop global markets through its global business networks, such as PF desks in Singapore, New York, London and Beijing. Last year, the overseas PF project costs stood at US$1.36 billion (1.54 trillion won), more than doubled from the previous year.
For Japan's Hokkaido Solar Power Project won by the Korea Electric Power Corporation (KEPCO) last year, KDB formed a PF creditor group with Woori Bank, Samsung Life Insurance and National Credit Union Federation of Korea, and financed 80 percent of the total project expenses of 11.3 billion yen (US$103.69 million or 118.6 billion won). The Hokkaido Solar Power Project with a total capacity of 39MW is the first new renewable energy project abroad carried out by the KEPCO. KDB completed financing for the project and had its groundbreaking ceremony on the same day.
KDB also participated in financing a solar power plant project in Ontario, Canada, won by Samsung C&T in last Dec. and this Jan., while it took part in an offshore wind power project in the U.K. last month. In addition, the bank signed a financing agreement for the state government-led road and supplementary facility construction project in New South Wales, Australia, last month.