OMAN: Korea Eximbank to provide USD 370 million project financing for Liwa Plastics

The Export-Import Bank of Korea (Korea Eximbank) has announced that it will provide USD 370 million (447.33 billion won) to finance the Liwa Plastics project in Sohar, construction of which has been awarded to Korea’s GS Engineering & Construction.

A report in Business Korea quoted an official of Korea Eximbank as saying: “As low oil prices have continued, many large projects have been cancelled all over the world and Korean companies have been facing difficulties to win orders. However, GS Engineering & Construction was able to receive the order after the bank led the financial negotiation based on its overseas network and project financing expertise.”

“The successful financing for the project will greatly contribute to securing the driving force of following projects and helping Korean companies win orders.”

The Liwa Plastics Project is being implemented with an investment of around USD 6.3 billion (7.62 trillion won).

Significantly, this is the second time that the bank has committed to provide large-scale financing to refinery and petrochemical projects led by the Omani government and won by Korean firms. Previously, Korea Eximbank provided USD 500 million (604.5 billion won) for the Sohar aromatic plant, a contract for the construction of which was awarded by Oman Oil Company to LG International Corp in 2006. A further USD 600 million (725.4 billion won) was committed as financing for the oil-refinery expansion project in Sohar, which went to Daelim in 2014.

Source: Daily “Oman Observer”, Muscat; 3 Feb 2016
(Syed Rashid Ali, Karachi, Pakistan)