K-SURE to provide $1.3 bn credit for Saudi petrochemical project

[Courtesy of The Korea Trade Insurance Corp.]

The Korea Trade Insurance Corp. (K-SURE), an export credit agency, said on Thursday that it will provide mid- to long-term export financing worth 1.7 trillion won ($1.3 billion) for the mega-scale Amiral petrochemical complex project in Saudi Arabia won by South Korean construction company Hyundai Engineering and Construction Co.

The Amiral project involves the construction of a petrochemical plant at the Jubail Industrial Park in the Persian Gulf, a collaboration between global oil giants Saudi Arabian Oil Co. (Saudi Aramco) and France‘s TotalEnergies SE.

The total project cost is estimated at 19 trillion won.

Hyundai E&C secured a 6.5 trillion won contract to build ethylene production facilities and utility infrastructure. It is the largest contract amount ever secured by a Korean company from Saudi Arabia.

K-SURE will support Hyundai E&C by providing guarantees for Aramco’s loans. In particular, Aramco will borrow 1.7 trillion won from foreign banks to pay Hyundai E&C and K-Sure will guarantee the loan by committing to repay it if Aramco defaults.

K-SURE signed an agreement with Aramco in October 2023 to provide export financing worth 3.9 trillion won to facilitate Korean companies’ entry into large-scale economic construction projects in Saudi Arabia.

“Saudi Arabia is a market where various projects are expected to be commissioned not only in petrochemicals but also in energy transition and urban development moving forward,” said K-SURE President Jang Young-jin. “We will make every effort to help Korean companies with excellent construction capabilities and price competitiveness to achieve more contracts in Saudi Arabia.”