S. Korea`s EXIMbank to provide US$300 mln to Brazilian firm

By Park Bo-ram
SEOUL, June 8 (Yonhap) -- South Korea's state-run trade bank said Monday it will
provide US$300 million in loans and guarantees to a Brazilian firm to help it
finance its ship purchases from a local shipbuilder.
The Export-Import Bank of Korea (EXIMbank) will extend $165 million in loans and
$135 million in guarantees to drilling-equipment firm Odebrecht SA, which ordered
two drill ships from South Korea's Daewoo Shipbuilding & Marine Engineering Co.
last year, the lender said in a statement.
Both of the ships are to be leased to Petrobras, a Brazilian state-run oil
company, and the proceeds from the long-term lease will be used to redeem the
loans, EXIMbank said.
"EXIMbank expects this deal will have a positive influence on local shipyards and
help them win more orders from Petrobras, which is planning to invest $174
billion in oil exploration over the next five years," the trade bank noted.
EXIMbank will provide more financing to local shipbuilders to take advantage of
this opportunity, it said.
Demand for local drill ships is expected to surge down the road as rising oil
prices and depleting reserves have sharpened competition for oil exploration, the
lender added.
pbr@yna.co.kr
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