Korea Eximbank provides $1 bn in PF for Saudi Amiral project

The Export-Import Bank of Korea (Eximbank) announced on Thursday that it will provide $1 billion in project financing for the Amiral petrochemical facility construction project in Saudi Arabia, which has been awarded to Hyundai Engineering & Co.

This project financing will be used to pay for construction costs incurred by South Korean companies.

As a result, it is expected to generate foreign currency earnings by exporting about $600 million worth of domestic goods and services, including equipment from about 90 small- and medium-sized enterprises, Eximbank explained.

The Amiral project, commissioned by SATORP, a joint venture between Saudi Aramco and France's TotalEnergies, involves building petrochemical facilities in the Jubail Industrial City in eastern Saudi Arabia. The total project cost is $14.8 billion.

Hyundai Engineering & Co secured a $5.1 billion contract for the olefin production facility package and utility facility package in June last year.

"We expect this financial support to strengthen economic cooperation between our government and Saudi Arabia," said an official from Eximbank.

"By utilizing the basic credit agreement signed with Aramco, we will serve as a bridgehead to help Korean companies secure future projects in the Middle East," he added.

Write to Hanjong Choi at onebell@hankyung.com