Leading financial institution, Mashreqbank psc (Mashreq) has announced the successful signing of USD 100 million syndicated medium term loan (Facility) for financing general corporate requirements of SK Engineering & Construction Co. Ltd (SK E&C) by a consortium including Mashreq, Al Ahli Bank of Kuwait K.S.C.P. (ABK), and Commercial Bank of Kuwait K.P.S.C. (CBK). Mashreq acted as the exclusive arranger and book runner for this transaction, while ABK and CBK acted as joint lead arrangers.
SK E&C, established in 1977 in the Republic of Korea, is a leading global player in the engineering, procurement, construction, operation and maintenance services industry, with an established track record of executing oil & gas and infrastructure projects in the Middle East such as the Ruwais Refinery Expansion Project in U.A.E., Bab Gas Compression Project in U.A.E., and Doha Metro’s Red Line North Underground Project in Qatar. SK E&C is part of the SK Group, which is the 3rd largest conglomerate in the Republic of Korea. SK Group is ranked 57th amongst the top 500 global companies.
This Facility is part of the company’s plan to proactively tap liquidity in the GCC financial markets given their upcoming financing requirements in relation to their Middle East projects. SK E&C has previously availed project-specific, contracting facilities from regional banks. This landmark Facility therefore represents an important advancement in the Company’s relationship with the regional banks through availing loans for general corporate purposes.
John Iossifidis, Head of Corporate & Investment Banking Group, Mashreq commented, “As one of UAE’s leading financial institutions, we have always nurtured our ambitions keeping in mind the nation’s, in fact the region’s, development vision. Mashreq considers SK E&C, a leading global player in the contracting world, to be an important client. Over last 7 years, we have actively supported SK E&C on 12 key infrastructure and Oil & Gas projects in the region, including the likes of Ruwais Refinery Expansion Project, Bab Gas Compression Project, and Doha Metro’s Red Line North Underground Project.
We are proud to support SK E&C as the sole book runner for their syndicated loan facility in the region, which will provide them the necessary cushion in relation to their upcoming financing requirements in the region by diversifying their regional banking relationships. This transaction re-iterates Mashreq’s continued commitment to support its clients and the regional economy, which has helped cement Mashreq’s position as a leading bank in contracting finance in the region.”
Mr Ho Eun Hong, Vice President, SK E&C has said, “SK E&C has executed various mega-size projects in the Middle East, focusing on oil & gas and infrastructure. Mashreq has always cooperated with SK E&C in a very dedicated and passionate manner by supporting our operations in working capital and contract finance. We have built great trust between us through our past experiences where we worked together and that helped lead this agreement to a great success.
This transaction is a great accomplishment driven by Mashreq’s enthusiastic support and timely execution, as well as SK E&C’s strong presence and the banking relations in the Middle East with ABK and CBK. Both ABK and CBK have offered us reliable financial services including support for the Kuwait Oil Company’s and Kuwait National Petroleum Company’s projects. We are very confident that this deal will work as a milestone in strengthening our relationships with Mashreq, ABK and CBK and look forward to our future cooperation in various financing fields.”