To Extend Senior Loan Worth 240 Mil. Canadian Dollars
KB Kookmin Bank announced on May 12 that it has completed a financial agreement to extend a 240 million Canadian dollar senior loan to finance the construction of natural gas pipelines in Canada.
The loan is part of 8 billion Canadian dollar project financing for 667-km Coastal Gaslink Pipeline in British Columbia, Canada. A total of 27 global financial institutions, including the five largest banks in Canada, such as the Royal Bank of Canada, participated in the project. KB Kookmin Bank was the only Korean bank among them.
Coastal GasLink Pipeline is an essential facility that connects gas fields in western Canada with LNG liquefaction terminals. It is expected to play a key role in exporting inexpensive Canadian natural gas. A long-term service contract was signed with global energy companies, including Shell, KOGAS, PetroChina, Malaysia’s Petronas and Japan’s Mitsubishi Corp. The pipeline will go into operation in 2022.
KB Kookmin Bank participated in the project to provide financial for KOGAS to secure national energy resources. It also took into consideration the value of the pipelines as a core infrastructure asset for the Canadian natural gas export project and the project’s stable business structure based on long-term use contracts with leading companies in the LNG sector.
Meanwhile, KB Kookmin Bank signed an equity bridge loan agreement worth US$100 million for a plant project in the UAE in late April.