Clifford Chance

Clifford Chance advises BNP Paribas on Saudi Arabian private placement by The Export-Import Bank of Korea

Clifford Chance and Al Jadaan & Partners have advised BNP Paribas ("BNPP") and Samba Capital & Investment Management Company ("SAMBA") on the issuance by The Export-Import Bank of Korea ("KEXIM"), of Saudi Arabian Riyal denominated floating rate notes to private investors pursuant to a private placement in Saudi Arabia.

KEXIM is an export credit agency, wholly-owned by the Government of South Korea and mandated with promoting export and competitiveness of Korean goods and services. The notes were issued pursuant to KEXIM's U.S.$15 billion Euro Medium Term Note Programme, listed on the Singapore Stock Exchange. The total issuance size was SAR 750 million with a coupon of 3-month SAIBOR, plus a margin of 1.70 per cent. per annum.  The notes will have a maturity of 5 years.

The issuance will support the ongoing growth of KEXIM's business in Saudi Arabia and its contributions to current and future infrastructure and energy projects within Saudi Arabia.  KEXIM is currently involved in the Saudi Aramco Total Refinancing and Petrochemical Company Project and is bidding for financing roles on a number of other key infrastructure projects in Saudi Arabia.

BNPP and SAMBA were Joint Lead Managers in respect of the issuance, which involved detailed considerations of the rules and regulations of the Saudi Arabian Capital Markets Authority and the Saudi Arabian Monetary Authority.

The Al Jadaan team was led by Mohammed Al Jadaan, supported by Dr Fahad Abuhimed. The Clifford Chance team was led by Debashis Dey and Stuart Ure and supported by Lauren Djedid and Abdullah Al Mosa.

Debashis Dey comments: "The very successful issue by KEXIM demonstrates the continued efforts to strengthen the commercial and political ties between South Korea and Saudi Arabia – the transaction also provides a rare opportunity for Saudi investors to invest in an investment grade, sovereign-linked issuance with little currency risk due to the denomination of the trade."