KB Kookmin Bank Signs C$210 Billion Project Finance Agreement for Canadian Natural Gas Pipeline

Strengthening Global IB through Financial Support for Overseas Prime Infrastructure Projects

[Asia Economy Reporter Kangwook Cho] KB Kookmin Bank announced on the 12th that it has completed the financial agreement for a senior loan of 240 million Canadian dollars (approximately 210 billion KRW) for a Canadian natural gas pipeline project finance (PF).

Despite the overseas project promotion being restrained and halted due to the impact of COVID-19, KB Kookmin Bank has recently successfully completed two financial supports for high-quality overseas infrastructure projects, continuing its active advancement into the overseas infrastructure market following last year.

This transaction is a senior loan for an 8 billion Canadian dollar project to construct the 667 km Coastal Gaslink Pipeline located in British Columbia, western Canada. A total of 27 global financial institutions participated, including the Royal Bank of Canada and four other major Canadian banks, with KB Kookmin Bank being the only domestic bank involved.

The Coastal GasLink Pipeline is an essential facility connecting gas fields in western Canada to LNG liquefaction terminals, expected to play a key role in exporting affordable Canadian natural gas. Long-term usage contracts have been signed with global energy companies such as Shell, Korea Gas Corporation (KoGas), PetroChina, Petronas, and Japan's Mitsubishi Corporation, ensuring stable operation, which is scheduled to commence in 2022.

KB Kookmin Bank participated in this financial support considering ▲ its role in supporting Korea Gas Corporation's national energy resource acquisition strategy ▲ the value of the Canadian natural gas export project's core infrastructure assets ▲ and the stable business structure based on long-term usage contracts with leading companies in the LNG sector.

Earlier, KB Kookmin Bank signed a financial agreement for a 100 million dollar equity bridge loan for a UAE plant project at the end of last month.

A KB Kookmin Bank official said, "We consider it meaningful to have successfully executed a global landmark deal amid a sharp decline in overseas project volumes due to COVID-19," adding, "We plan to continue steady growth in the global IB sector through financial support focused on high-quality infrastructure assets."

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