K-Exim/K-sure project financing explained

Abstract

Lenders explain an unconventional approach to leverage equity structuring in an otherwise orthodox project finance deal.

The Export-Import Bank of Korea (K-Exim), Korea Trade Insurance Corporation (K-sure) and a group of 11 international commercial bank lenders raised financing for a $2.5 billion greenfield petrochemical facility for Jurong Aromatics on Jurong Island, Singapore.

Stephen McWilliams, managing partner of Latham & Watkins in Singapore told IFLR the deal had required a balancing of competing priorities between senior and junior lenders.

"Standard Chartered and Icon wanted voting rights and control provisions from their subordinated debt position like equity holders, so we had to balance out," he explained.