Doosan Heavy Industries & Construction Secures Over 1 Trillion KRW Loan from KDB and KEXIM... "Expecting Smooth Financial Structure Improvement"

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Doosan Heavy Industries & Construction, which is experiencing financial difficulties, will receive 1 trillion won in support from the Korea Development Bank and the Export-Import Bank of Korea.

Doosan Heavy Industries & Construction announced on the 26th that it will sign a loan agreement worth 1 trillion won with the Korea Development Bank and the Export-Import Bank of Korea. Doosan Co., Ltd., the major shareholder of Doosan Heavy Industries & Construction, will provide stocks including common shares of Doosan Heavy Industries & Construction it holds, as well as real estate, as collateral.

The loan agreement signed this time is separate from the 600 billion won overseas public bond maturity loan conversion deal currently under negotiation with the Export-Import Bank. Doosan Heavy Industries & Construction has requested the Export-Import Bank, which provided payment guarantees, to convert the foreign currency bonds maturing in April into loans.

Doosan Heavy Industries & Construction explained, "To improve the financial structure, we are expanding capital by receiving Doosan Mecatec Co., Ltd. as a contribution in kind from Doosan Co., Ltd., and are implementing self-help efforts such as recently conducting voluntary retirement to reduce fixed costs. Due to difficulties caused by the tightening of the financial market resulting from the COVID-19 pandemic, we are borrowing funds from these banks."

A Doosan Heavy Industries & Construction official said, "We expect that this loan will serve as a stepping stone to more smoothly carry out the originally planned financial structure improvement," adding, "Doosan Heavy Industries & Construction plans to complete the financial structure improvement activities as soon as possible and repay the loan amount."

This content was produced with the assistance of AI translation services.