The Export-Import Bank of Korea, together with financial institutions in France and Singapore, will provide a total of $514 million (about 746.3 billion won) in financing for Guam's largest solar project, which Korea Electric Power Corporation (KEPCO) and Samsung C&T have won. Of that, the Export-Import Bank will handle about half, or $241 million (about 349.9 billion won).
According to the financial sector on Feb. 5, the Export-Import Bank of Korea, France's NATIXIS, and Singapore's DBS Bank recently signed a financing agreement with a consortium composed of KEPCO, Samsung C&T, and others (Team Korea).
The project will build a large-scale solar and energy storage system (ESS) complex in Yona, Guam. It will construct a 132 MW (megawatt) solar power plant and a 325 MWh (megawatt-hour) battery energy storage system (BESS) to back it up.
The Export-Import Bank's financing package consists of a $150 million project financing (PF) loan and a $91 million equity bridge loan (a short-term loan for interim funding). The PF will be jointly arranged with NATIXIS. NATIXIS will handle $123 million of the PF. The bridge loan will be co-lent with DBS Bank. Of the total $151 million bridge loan, the Export-Import Bank will handle $91 million and DBS will handle $60 million. Of the total $514 million in loans, the Export-Import Bank will provide about half, or $241 million.
From the early bidding stage, the Export-Import Bank boosted the financing competitiveness of KEPCO and Samsung C&T by issuing letters of interest, contributing to the contract win. The Guam Power Authority (GPA) plans to purchase all electricity produced by the project for 25 years.