Eximbank Provides New Loans To Doosan Heavy To Pay Off $ 500 Million In Foreign Currency Bonds

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[Courtesy of Doosan Heavy Industries & Construction]

SEOUL – Doosan Heavy Industries & Construction, a key contractor in South Korea’s energy industry, to receive new loans from state lender to repay $ 500 million in foreign currency bonds due April 27 . The Import-Export Bank of Korea will determine how much additional money is needed for Doosan Heavy once the due diligence is completed.

Doosan Heavy will receive 586.8 billion won ($ 475 million) at the one-year maturity of Eximbank, which guaranteed Doosan Heavy’s foreign exchange bonds. As a result of the loan conversion, outstanding loans from Eximbank to Doosan Heavy increased to 1,400 billion won.

The company has already received one trillion won from Eximbank and the Korea Development Bank (KDB), which described a special bailout for Doosan Heavy as an inevitable choice to protect a key industry hit by a global coronavirus pandemic.

Eximbank data showed Doosan Heavy grappling with 4.2 trillion won in loans owed this year, including 1.2 trillion won in corporate bonds, 1.1 trillion won in government bank loans, 780 billion won. billion won in commercial bank loans, 360 billion won in foreign bank loans. loans and 700 billion won in corporate bonds and short-term bonds.

Eximbank will determine the amount of additional money required for Doosan Heavy once the due diligence is completed. The company has divested non-core assets due to uncertain business prospects caused by President Moon Jae-in’s policy to phase out fossil-fueled power plants.

Doosan Heavy has made self-rescue efforts to improve its financial structure, including voluntary retirement, but has failed to alleviate financial problems due to COVID-19. The company has promised to pay off its debt through restructuring.

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