EXIMbank to Provide $300MM to Brazilian Firm for Drillships

Export Import Bank of Korea

Korea's state-run trade bank will provide $300 million in loans and guarantees to a Brazilian firm to help it finance its ship purchases from a local shipbuilder.

The Export-Import Bank of Korea will extend $165 million in loans and $135 million in guarantees to drilling-equipment firm Odebrecht SA, which ordered two drillships from South Korea's Daewoo Shipbuilding & Marine Engineering Co. last year, the lender said in a statement.

Both of the ships are to be leased to Petrobras, a Brazilian state-run company, and the proceeds from the long-term lease will be used to redeem the loans, EXIMbank said.

"EXIMbank expects this deal will have a positive influence on local shipyards and help them win more orders from Petrobras, which is planning to invest $174 billion in oil exploration over the next five years," the trade bank noted. EXIMbank will provide more financing to local shipbuilders to take advantage of this opportunity, it said.