KEXIM bank inks $6 billion financing deal with Aramco

The Export-Import Bank of Korea said on Tuesday it has signed a three-year framework agreement with Saudi Arabian Oil Co.(Aramco), to provide up to $6 billion in financing for projects involving South Korean companies in the Middle East. 

The deal was signed by the bank’s president Yoon Hee-sung and Aramco’s chief financial officer Ziad Al-Murshed at the bank’s headquarters in Seoul. 

The agreement allows the bank to offer fast and flexible financing for orders or joint venture projects from Korean firms with Aramco, the world’s largest oil producer and a major customer for Korean contractors and suppliers. 

Aramco is ramping up its investment in oil and gas fields as well as new energy industries amid rising oil prices and global efforts to achieve carbon neutrality. 

Yoon said the agreement will help Korean companies secure more business opportunities in the Middle East, especially in hydrogen and renewable energy fields, where the bank has allocated a separate $1 billion limit for cooperation.

He said the bank has built a proactive financial cooperation system with Aramco and will play a role as a bridgehead for Korean firms to win business in the region.

Write to In-Hyeok Lee at twopeople@hankyung.com