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EXPORT FINANCE AND
INSURANCE CORPORATION (EFIC) |
Korea Development Bank may buy Lehman Brothers
Korea Development Bank said Tuesday it is in the hunt for troubled
U.S. investment bank Lehman Brothers, confirming weeks of
speculation over its intentions amid expectations the Wall Street
institution is in dire need of a capital injection. Min Euoo-sung,
the governor of state-owned KDB, said that discussions were under
way "to form a consortium with private banks as (we) believe it is
more desirable to acquire Lehman Brothers jointly rather than
alone."
"It is difficult to say how the talks will progress in the future as
we have not been able to narrow differences with the Lehman side
over prices," he added in Korean-language comments to reporters,
according to the bank's public relations office.
It was unclear from Min's remarks how much of a stake in Lehman the
banks were seeking to obtain in the negotiations or if the private
banks referred to South Korean banks. Jun Kwang-woo, chairman of
South Korea's Financial Services Commission, in comments last month
questioned whether a state-run institution should take the lead role
in such an acquisition.
"Generally speaking, the private sector should be the leader in such
a deal," he told reporters on Aug. 25. Jun's comments had caused
speculation that the government was trying to warn KDB away from
pursuing a deal for Lehman Brothers. Min said Tuesday that
differences in viewpoint between his bank and the FSC, the
government's financial regulator, have narrowed.
(More)
China Development Bank Gets Capital Injection of USD 20 Billion
Upon approval by the State Council, Central SAFE Investments Limited
signed an agreement with China Development Bank ("CDB") on December
31 in Beijing, confirming it will inject USD 20 billion into CDB
from the signing date.
Under wise leadership of the CPC Central Committee and State
Council, People's Bank of China works with relevant departments to
implement scientific development outlook, profoundly studies and
grasps the spirits of National Financial Work Conference and takes
pushes to promote reform of CDB based on elaborate and repeated
discussions of the reform scheme. This capital injection will
significantly improve the capital adequacy ratio of CDB and enhance
its risk-resistance capability. As a fundamental measure in the
reform of CDB, it will be beneficial to fully carry out
commercialized operations and marks a significant step in the reform
of CDB.
Source
KDB partners with China's CICC
Mr. Euoo Sung Min, Chairman & CEO of Korea Development Bank (KDB),
met with Mr. Levin Zhu Yunlai, CEO of China International Capital
Corporation (CICC), in Beijing on July 8, 2008 to sign an MOU
between the two financial institutions. The MOU is designed to
facilitate consulting on Korean companies' IPOs in markets of
Mainland China and Hong Kong.
CICC is the leading investment bank of China. Since its
establishment in 1995, the corporation has conducted successful IPOs
in Shanghai and Hong Kong for major enterprises of China, including
Petro China, Industrial and Commercial Bank of China (ICBC), and
China Construction Bank (CCB).
The signing took place in line with the opening of KDB's Beijing
branch under the Bank's vision to develop itself into Asia's leading
investment bank. The MOU bears particular significance as KDB's
counterpart is the No. 1 investment bank of China.
Source
Exim Bank Of India Extends A Line Of Credit Of US$ 10 MN To National
Bank Of Uzbekistan
Exim Bank of India and National Bank for Foreign Economic Activity
of The Republic of Uzbekistan (NBU) have signed an Agreement for a
Line of Credit (LOC) of US$ 10 million to be provided by Exim Bank
of India to NBU for financing India's exports to Uzbekistan. The
Agreement was signed by Mr. Nirmit Ved, Resident Representative at
Exim Bank's office in Dubai and Mr. Mekhriddin Abdullaev, First
Deputy Chairman of the Board, NBU, on Thursday, August 21, 2008 at
Tashkent. The LOC will facilitate and boost India's exports to
Uzbekistan.
Exim Bank will reimburse 90% of contract value to the Indian
exporters, upfront upon the shipment of goods. India's export to
Uzbekistan in 2007-08 amounted to US$ 79 mn, registering an increase
of 37 % over the previous year. Main products exported from India to
Uzbekistan are drugs, pharmaceuticals & fine chemicals, Machinery &
instruments and manufactures of metals.
Exim Bank has now in place 100 Lines of Credit, covering 91
countries in Africa, Asia, Latin America, Europe and the CIS, with
credit commitments amounting to US$ 3.28 billion, available for
utilization for financing exports from India. Exim Bank's LOCs
afford a risk-free, non-recourse export financing option to Indian
exporters.
(More)
DBP
prepays foreign loans
The
Development Bank of the Philippines (DBP) will prepay some of its
foreign-currency denominated loans ahead of schedule which should
allow the state-run bank to save on interest costs. DBP will pay 2.4
million Euros to Finland-based multilateral development financing
organization Nordic Development Fund for a loan availed on May 4,
1992, which is scheduled to mature on Jan. 15, 2032.
It
will also prepay four billion won owed to the Export-Import Bank of
Korea for a loan received on August 10, 1995 that is set to mature
on July 20, 2015. DBP will also prepay a total of $27.9 million to
the International Bank for Reconstruction and Development (the World
Bank) for loans that were granted on August 2, 1989 and April 23,
1993 scheduled to mature on August 1, 2009 and August 15, 2012,
respectively.
(More)
EFIC PROVIDES EXPORT FINANCE GUARANTEE FOR AUSTRALIAN FAST FERRIES
TO TURKEY
Export Finance and Insurance Corporation (EFIC) has announced that a
finance package, worth nearly US$107.2 million, has been finalised
for the Istanbul Metropolitan Municipality (IMM). This will enable
IMM to purchase two high-speed catamarans to be constructed by
Austal Ships Pty Ltd (Austal).
EFIC worked with KfW of Germany and the European Investment Bank (EIB)
to structure and arrange the 100% finance package whereby EFIC will
provide an Export Finance Guarantee to KfW for 80% of the contract
amount.
EFICs guarantee covers KfW, as the lender, against commercial and
political risks that may arise during the term of the loan. The
remaining portion of the contract amount is to be provided by EIB
with the backing of KfW.
This transaction marks the beginning of new relationships with both
KfW and EIB, said Craig Scullin, Director, Structured Trade and
Project Finance for EFIC. Working closely together, we were able to
provide IMM with a long-term financing solution at a competitive
price.
IMM,
through its ferry operating company, Istanbul Deniz Otobusleri (IDO),
is one of the worlds largest ferry operators, transporting over 12
million passengers in and around Istanbul each year.
EFIC has had a long and successful association with IMM, IDO and
Austal through the export of numerous vessels. The completion of
this latest contract will bring the number of Austal vessels
delivered to Istanbul to 10, said Mr Scullin.
Austals export success has also been aided by extensive support
from Austrade since the early 1990s. Austrades Istanbul office was
helpful in securing this repeat business in Turkey.
(More)
EXIM BANK EXTENDS CREDIT LINES TO ANGOLA AND SEYCHELLES
Exim Bank of India has extended two Lines of Credit aggregating US$
18 million to Angola and Seychelles, comprising US$ 10 million for
export of tractors to Angola and another US $ 8 million, at the
behest of Government of India, for export of essential commodities
to Seychelles.
The
LOC Agreement with Angola was signed on July 6, 2006 by Mr. R.M.V.
Raman, Executive Director on behalf of Exim Bank and Mr. Antonio Da
Costa Fernandes, Ambassador of Republic of Angola in India. The LOC
Agreement with Seychelles was signed on July 10, 2006 by Mr.
R.M.V.Raman, Executive Director on behalf of Exim Bank and Mrs.
Lekha Nair, Principal Secretary, President's Office, Department of
Finance, Government of Seychelles.
Exim Bank has in place 62 Lines of Credit with credit commitments
aggregating US$ 2.224 billion, which are available for financing
India's exports to countries in Africa, Asia, Latin America, East
Europe and the CIS. Exim Bank's LOCs afford a risk-free,
non-recourse export financing option to Indian exporters.
(More)
JBIC SIGNS FIRST ODA LOAN AGREEMENT WITH NAMIBIA
Supporting Poverty Reduction through Road Improvement
Japan Bank for International Cooperation (JBIC; Governor: Kyosuke
Shinozawa) signed an ODA loan agreement on August 9, totaling up to
10,091 million yen with the Government of the Republic of Namibia to
finance the "Rundu-Elundu Road Upgrading Project". This is the
first ODA loan JBIC has extended to Namibia. The financial
assistance for this project followed the policy of the Government of
Japan, which announced in April 2005 that it would double official
development assistance (ODA) to Africa in the next three years.
The project consists of using asphalt to pave the road crossing the
two regions, Kavango and Ohangwena, which stretches about 370 km
from Rundu to Elundu along the border of Angola in northern
Namibia. The proceeds of the loan will be used for road paving work
and consulting services, including bidding assistance and
implementation supervision.
There is a wide disparity between the rich and poor in Namibia, with
many poor people living in the northern regions. The national and
regional roads crossing the two northern regions are not only main
regional roads serving local communities along the way but also
trunk roads crossing the northern regions from east to west. Of
these roads, the section between Rundu and Elundu remains unpaved,
posing an obstacle to improve the standards of living of local
communities and boosting economic activity. This road is also an
extension of the Trans-Caprivi Highway that links the neighboring
land-locked nations such as Zambia and Botswana. It is thus used as
an international cargo transport route linked to Angola. However,
under the present road conditions, cargo traffic on the unpaved road
is limited, as most of it has to take a detour route. This project
aims to improve the living standards of populations living in the
two poor northern regions by paving this road, thereby facilitating
trade in southern Africa and reducing poverty in the entire country.
In recent years, the spread of HIV/AIDS has had a major impact on
the country's poor people. Therefore, the consulting services for
the project include planning HIV/AIDS prevention programs and
engaging in awareness-raising activities so that an increased volume
of traffic resulting from road improvement will not lead to further
deterioration in the country's HIV/AIDS situation. (More)
LOAN FOR TANGGUH LNG PROJECT IN INDONESIA
Supporting Stable Supply of Energy Resources in Indonesia,The
largest LNG exporter for Japan
Japan Bank for International Cooperation (JBIC; Governor: Kyosuke
Shinozawa) signed on August 1st a loan agreement totaling up to
US$1.2 billion with Japan International Finance Management (Tangguh)
Corporation, a project company set up by Japanese sponsors, to
finance the Tangguh LNG Project. The Project, which aims to develop
natural gas fields in West Irian Jaya and process their output into
LNG, is undertaken by Mitsubishi Corporation, Nippon Oil Exploration
Limited (NOEX), LNG Japan Corporation (a subsidiary of Sumitomo
Corporation and Sojitz Corporation), INPEX Corporation,
Kanematsu Corporation,
Overseas Petroleum Corporation (a subsidiary of Mitsui & Co., Ltd.),
Japan Oil, Gas and Metals National Corporation (JOGMEC), BP p.l.c.
and China National Offshore Oil Corporation (CNOOC).
Under this Project, which is the first large project being
undertaken under the new oil and gas law in Indonesia, three blocks
of gas field in the Berau Bay are developed together and LNG is
produced in gas liquefaction facilities (annual capacity: 3.8
million tons x 2 trains) and sold. Japanese participants have a
combined total of 45.9% share (based on aggregated output from three
blocks of gas field) in this Project. JBIC supported this Project
to strengthen its ties with Indonesia, which is the largest LNG
exporter for Japan, thereby serving to secure a stable supply of
energy resources to Japan.
Currently, increasing the supply of natural gas for domestic use is
high on the national agenda because Indonesia has to cut back on the
fiscal burden of domestic oil subsidies, while setting aside
adequate crude oil for exports. Thus, the government would like to
give priority to gas supply for domestic use. Drawing upon its
experience of consistently supporting Indonesian LNG projects since
1970s when the country was at the very first stage of LNG
development, JBIC has encouraged the country to continue LNG exports
to Japan through negotiations during the project examination
process.
JBIC is committed to supporting Indonesia for mitigating its tight
domestic gas supply, advancing economic development and increasing
foreign currency earnings by employing its various financing
instruments, while utilizing and further strengthening the ties it
has cultivated with Indonesia, which is endowed with rich natural
resources. At the same time, JBIC is seeking to secure a stable
supply of energy resources to Japan and energy security in the Asian
and Pacific region.
(More)
JBIC SIGNS A MOU ON THE KYOTO MECHANISMS WITH MALAYSIAN RHB AND JCF
Partnership to Achieve Japan's GHG Emission Reduction Target
Japan Bank for International Cooperation (JBIC; Governor: Kyosuke
Shinozawa) today signed a Memorandum of Understanding (MOU) with RHB
Bank Berhad (RHB)1, a Malaysian commercial bank, and
Japan Carbon Finance, Ltd. (JCF)2 to promote Clean
Development Mechanism (CDM)3 projects based on the Kyoto
Mechanisms4 in Malaysia.
The MOU seeks to promote CDM projects through JBIC financing and to
support acquisition by Japanese firms, including JCF, of emission
credits (Certified Emission Reduction: CERs) generated from such
projects. Since the Malaysian government has put an institutional
structure in place for undertaking CDM projects, there are growing
expectations among Japanese firms regarding participation in the
country's CDM projects5. Under these circumstances, JBIC
signed the MOU with RHB and JCF to enhance cooperative arrangements
with them, including information sharing and consideration of
financial support, for private sector-driven undertaking of CDM
projects.
To achieve Japan's greenhouse gas (GHG) emissions reduction target
(6% below the 1990 level) under the Kyoto Protocol, it is essential
to resort to the Kyoto Mechanisms, including the CDM, in addition to
making a range of domestic efforts to reduce GHG emissions. The
Kyoto Protocol Target Achievement Plan drawn up by the Japanese
government also emphasized the importance of acquiring carbon
credits with a broad utilization of the Kyoto Mechanisms.
Amid these developments, JBIC is making active efforts to promote
the Kyoto Mechanisms by making maximum use of its long-cultivated
ties with developing country governments through loan and guarantee
operations and its overseas network of representative offices. The
signing of this MOU represents a part of these efforts. In the
Asian region where it is expected that many CDM projects will be
undertaken in the coming years, JBIC will continue comprehensive
support for acquiring carbon credits, including vigorous financial
support, information collection and exchange of opinions.
(More)
JBIC PROVIDES BANK-TO-BANK LOAN TO ENCOURAGEMENT BANK IN BULGARIA
First Credit Line to Bulgaria to Support Japanese Exports
Japan Bank for International Cooperation (JBIC; Governor: Kyosuke
Shinozawa) signed a bank-to-bank loan[1][1]
agreement on July 19 totaling up to 10 million with the Joint
Stock Company Encouragement Bank AD (Encouragement Bank) in the
Republic of Bulgaria. The loan is cofinanced with Mizuho Corporate
Bank.
This loan is provided as a credit line to the Encouragement Bank,
the only official financial institution in Bulgaria, in order to
enable it to finance medium- and long-term funds for Bulgarian firms
as they import machinery and equipment from Japanese exporters. In
Bulgaria, the primary market of which is the European Union (EU),
domestic firms usually conduct business transactions using the euro.
The first euro-denominated credit line for Bulgaria was offered to
meet such needs. The loan is thus expected to facilitate Bulgarian
firms in procuring machinery and services from Japan and to help
expand Japanese exports.
Since adopting a comprehensive set of policies for financial
stabilization in July 1997 Bulgaria has posted robust economic
growth of about 5% annually in a stable macroeconomic environment.
In gaining accession to the EU in 2007, the country has to comply
with the EU's environmental standards and therefore takes a strong
interest in advanced Japanese technologies for modernizing
industrial technology and harnessing renewable energy to reduce
greenhouse gas (GHG) emissions. It is thus expected that there will
be further expansion of business transactions between Japan and
Bulgaria. JBIC pledged cooperation regarding the Kyoto Mechanisms
with the Government of Bulgaria in December 2004 to promote GHG
emission reduction projects in Bulgaria, which is eager to press
ahead with environmental business, and support for Japanese firms in
acquiring GHG emission reduction credits generated from such
projects.
Under these circumstances, the loan will support increased business
transactions between the two countries. JBIC is committed to further
expanding Japanese firms' activities in Bulgaria, including the area
of environmental business, thereby strengthening economic relations
between Japan and Bulgaria.
(More)
LAUNCH OF GLOBAL YEN BOND
Development Bank of Japan (DBJ) launched its Global yen bond,
guaranteed by the government of Japan, on 6th of June, 2006.
Details are as follows:
Issue amount: JPY 50 billion
Maturity: 19th March, 2026
Coupon: 2.30%
Re-offer price: 99. 261%
Yield: 2.346%
Guarantor: Japan
Listing: London
Joint bookrunners: Nikko Citigroup^UBS Investment Bank
Signing date: 8th June, 2006
Closing date: 15th June, 2006
ADB
GRANT TO IMPROVE ROAD CONNECTIONS SERVING NEPAL'S RURAL POOR
A
US$55.2 million grant from ADBs concessional Asian Development Fund
(ADF) will help expand and rehabilitate the feeder road system in
Nepal to improve access to market, jobs, and health and education
centers in rural areas.
Poor road connectivity is a major development constraint for the
country, and inadequate feeder roads, or access roads, worsen the
isolation of remote rural areas, mostly in northern hilly regions.
Rehabilitating and expanding feeder roads will help promote
inclusive social and economic development, says Nianshan Zhang, an
ADB Portfolio Management Specialist.
Improved access of remote people to social facilities and jobs in
major towns will foster a social and economic development process
that can lead to a steady decline in poverty.
The
project will construct and upgrade 10 feeder roads and one bridge,
to a total of about 490 kilometers, serving poor, isolated people
mainly in hilly areas. This covers the construction of new roads to
three district headquarters that are currently not connected to the
national highway, and the upgrading of existing district roads to
all-weather condition in 17 of the countrys 75 districts, affecting
about 1.4 million people. The prospective roads are included in the
Governments 10-Year Road Sector Midterm Program.
In
addition, a $300,000 technical assistance grant accompanies the
project to help the Department of Roads carry out road feasibility
studies, and to local construction and consulting services
industries in road construction and contract management.
The
project is the first new investment to be approved by ADB for Nepal
since December 2004, and the countrys first to be financed under
ADF grant financing.
The
total cost of the project is estimated at $80 million, with the OPEC
Fund for International Development providing a $10 million loan to
finance civil works. The Government will shoulder the balance of
$14.8 million.
The
Ministry of Physical Planning and Works is the executing agency for
the project, which is due for completion around December 2012.
(More)
ADB
TO ASSIST IN DEVELOPING GAS PIPELINE PROJECT IN INDONESIA
A
$75 million loan will promote clean, indigenous energy in Indonesia
by assisting in the construction of a 661 km natural gas pipeline
from South Sumatra to West Java.
In
addition to a direct loan without government guarantee to the
Indonesian energy firm PT Perusahaan Gas Negara (PGN), ADB will
support loans of up to $125 million to PGN provided by other
international financial institutions and commercial banks, also
without government guarantee.
The
$652.5 million project involves the construction of a pipeline for
the transportation of natural gas from major gas fields in South
Sumatra to the major gas consuming areas of West Java. The pipeline
is one of two being built by PGN to address a shortage of natural
gas in West Java.
This pipeline will promote clean energy, support economic growth in
West Java and is also a strong endorsement of Indonesias sector
reforms in the oil and gas sector, said Stephen N. Edwards,
Structured Finance Specialist with ADBs Private Sector Department.
PGN, an Indonesian gas utility involved in the transmission,
distribution, and sale of natural gas, is 61% owned by the
Government of Indonesia. Holding over 90% of the gas distribution
market, PGN has a dominant position in the countrys gas industry.
The
project is ADB's second non-sovereign guaranteed operation in
Indonesia's oil and gas sector. The first one, a $350 million loan
to help develop the Tangguh Liquefied Natural Gas Project in Irian
Jaya Barat province, was signed last 1 August.
http://www.adb.org/Media/Articles/2006/10415-Indonesia-clean-energy/default.asp
GRANT TO IMPROVE RURAL ROADS IN SOLOMON ISLANDS
A
US$16.2 million grant package should help improve the efficiency and
effectiveness of the national network of rural roads in Solomon
Islands.
The
package, comprising $350,000 from ADBs Asian Development Fund, $6.1
million from the Government of Australia, and $9.75 million from the
Government of New Zealand, will finance the rehabilitation of about
100 kilometers of provincial and secondary roads. The Government of
Solomon Islands will contribute $650,000 equivalent toward the
projects total estimated cost of $16.85 million.
It
will also fund improved road maintenance by developing and
implementing management systems, helping to implement a national
transport fund, and involving private contractors and communities in
the task.
Solomon Islands, one of the least developed of ADBs Pacific member
countries, is characterized by high unemployment, especially among
youth, and one of the highest population growth rates in the world.
Combined with slow economic growth, this situation is exacerbating
poverty in the country.
Investment in the road network, which has never been adequate, has
declined in recent years, leaving the sector badly underfunded. The
present road network is sparse, and does not reach 77% of the rural
population. Many existing roads have deteriorated, leaving only a
fifth in good condition, with the rest not passable by light
vehicles.
The rural economy needs to be revitalized if we are to ensure that
sustainable economic growth is created that benefits the poor, and
social and health indicators are improved, says Robert Guild, an
ADB Transport Specialist. Better transportation infrastructure and
services will help remove barriers to market access and promote
rural production.
The
project will complement other ADB assistance underway - including
road investments and technical assistance to improve interisland
shipping and civil aviation - by creating an integrated
transportation system to link rural areas to urban centers for
access to markets and social services.
The
Ministry of Infrastructure and Development is the executing agency
for the project, which will be carried out over about five years.
(More)
LUXEMBOURG ESTABLISHES FINANCIAL SECTOR DEVELOPMENT PARTNERSHIP FUND
AT ADB
The
Government of Luxembourg will make an initial grant of $1.5 million
over the next three years for a fund aimed at strengthening
regional, subregional, and national financial systems in Asia and
the Pacific.
The
Financial Sector Development Partnership Fund will finance a program
of projects, including technical assistance operations, components
of investment projects, and stand-alone grant-financed activities,
focusing on the financial sector. The Fund is set up as a multidonor
fund, and other donors are welcome to join.
All
developing member countries of ADB will be eligible for assistance
under the fund, however, activities in the Lao Peoples Democratic
Republic (Lao PDR), Viet Nam, and Mongolia, as well as regional
activities in the Greater Mekong Subregion will be given priority
for Luxembourgs assistance.
This generous contribution from the Government of Luxembourg will
play an important role in strengthening financial systems across the
region, says Werner Liepach, Principal Director of ADB's Office of
Cofinancing Operations.
Eligible activities include promoting regional markets; improving
the policy, legal, regulatory, and supervisory frameworks, including
corporate governance, internationally recognized standards and
codes, financial system stability assessments, and financial sector
assessment programs; strengthening and modernizing local financial
institutions; and improving access to financial services by the
poor.
Activities to improve the general investment climate, such as work
to enhance the general legal and regulatory framework, strengthening
governance, and boosting administrative procedures, are also
eligible.
(More)
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