KDB boosts export financing

Korea Development Bank is to use a $50 million trade finance facility to help finance a booming export economy.

Korea Development Bank (KDB) is to receive $50 million trade finance facility via a syndication arranged by Deutsche Bank. The facility will be used by KDB to provide pre- and post-export finance to the booming Korean export economy which recorded a $12.1 billion trade surplus in 2000.

According to KDB, this deal has been recently restructured, the interest margin of the facility is 65 basis points over Libor, down from the originally planned 175bp. KDB nor Deutsche Bank could comment on the restructured deal. The facility will be drawn down over six months.

According to Deutsche Bank, the deal was oversubscribed. Axel-Peter Ohse, Deutsche Bank's global head of international trade finance, comments: "It [the deal] shows that there continues to be strong demand in the market for first class Korean Bank names."

The lead managers were Bank of Montreal, Banque Brussels Lambert, Singapore Branch, China Construction bank, Hong Kong Branch, and DG Bank Deutsche Genossenschaftsbank AG.