Eximbank plans to borrow US$2 bln more from overseas

The state-run Export-Import Bank of Korea (Eximbank) plans to secure around US$2 billion additionally from overseas financial markets later this year as part of its efforts to brace for worsening borrowing conditions, its chief said Tuesday. Eximbank has raised $7.8 billion via overseas borrowing this year and plans to raise $2 billion additionally, by tapping Japanese and Middle Eastern investors, Eximbank Chairman and President Kim Yong-hwan told lawmakers at a parliamentary audit session. Kim said the state-run lender is likely to opt for private placement bonds or bank loans, given the frigid conditions for public bond offerings. Eximbank will move to borrow from overseas as early as the end of October, if conditions are "good," he added. The top banker said it is likely Eximbank will use half of the borrowing to repay debts, while using the remainder to support local lenders suffering from a lack of short-term capital. Eximbank had initially aimed to raise $8.8 billion from overseas this year. Earlier this year, the policy lender issued Samurai bonds worth 80 billion yen ($1 billion) and dollar-denominated bonds worth $1 billion.