Export-Import Bank Secures Railway Vehicle Supply Project through Direct Loan to Tanzanian Government

Korea Eximbank Directly Negotiates Finance with Tanzanian Government... Resolving Hyundai Rotem's Export Payment Collection Risk
Korea Eximbank: "Will Eliminate Financial Support Blind Spots with Special Account and Drive Order Market Expansion"

[Asia Economy Reporter Song Hwajeong] The Export-Import Bank of Korea announced on the 31st that it will provide a total of $151.6 million through a special account for the Tanzania railway vehicle supply project.

The special account is a financial product introduced in 2019 to support Korean companies' business orders in low-income countries (rated B+ or below) where general export financing is difficult due to high country risk.

The Tanzania railway vehicle supply project is a project in which Hyundai Rotem supplies electric trains and electric locomotives to the Standard Gauge Railway under construction by the Tanzanian government. Hyundai Rotem has entered the Sub-Saharan African market for the first time through this project order.

With this financial support from the Export-Import Bank of Korea, Hyundai Rotem resolved risks related to receiving export payments.

Since the contract signing between Hyundai Rotem and Tanzania Railway Corporation in July last year, the Export-Import Bank of Korea has directly negotiated with the Tanzanian government.

An official from the Export-Import Bank of Korea said, "This is the first case of export financing support to Tanzania by the bank, breaking away from the existing cooperation centered on the Economic Development Cooperation Fund (EDCF) and laying the foundation for supporting large-scale infrastructure projects," adding, "In the future, we will actively accept country risks through the special account to eliminate blind spots in financial support and lead the expansion of our companies' order markets."

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