Hyundai Construction Panama Metro Project Selected as 'TXF Deal of the Year'

Hyundai Engineering & Construction_ Trophy image for 'Deal of the Year' selected by UK financial magazine TXF. (Provided by Hyundai Engineering & Construction)

[Asia Economy Reporter Kim Hyemin] Hyundai Engineering & Construction announced on the 13th that the financial agreement for the Panama Metro Line 3 project was selected as the 'Deal of the Year' in the Americas region by TXF, a UK-based financial magazine. TXF annually selects and announces the top 10 deals worldwide in various categories within the global financial market.

The 'Panama Metro Line 3 project' is the largest infrastructure project by the Panamanian government, involving the construction of a total of 25 km of elevated railway (monorail), 13 stations, and one vehicle depot to connect Panama City, the capital of Panama, with the western Arraij?n area. Hyundai Engineering & Construction participated in the bidding as a consortium with Hyundai Engineering and POSCO Engineering & Construction in 2019 and ultimately won the project.

The agreement recognized for its global financial execution capability is a medium- to long-term financial agreement signed by the Hyundai E&C consortium last year for the purchase of a $2.7 billion 'construction payment guarantee.' This system involves financial institutions purchasing export receivables issued by the exporter from the ordering party on a non-recourse basis, providing funds to the exporter in advance, and recovering the funds from the ordering party after 3 to 7 years.

Hyundai Engineering & Construction explained that the agreement received high praise because it was the first supplier credit transaction involving Korea's official export credit agencies (ECAs) such as the Export-Import Bank of Korea and Korea Trade Insurance Corporation, involved capable financial institutions from around the world including Panama's national development bank, Asia, Europe, and the United States, and utilized green finance in the financial structuring to contribute to reducing carbon dioxide emissions. Prior to the bidding, the Export-Import Bank of Korea and Korea Trade Insurance Corporation established the 'medium- to long-term export receivables purchase system' and supported the consortium for this project for the first time.

A Hyundai Engineering & Construction official stated, "With the establishment of Korea ECA's medium- to long-term export receivables purchase system, not only was the largest infrastructure project in Panama's history successfully secured, but a foundation was also laid for domestic companies to enhance their financial competitiveness in the Latin American market. Hyundai Engineering & Construction will actively utilize this system going forward to further accelerate its entry into the Latin American market."

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