Korea Eximbank upsizes BDO credit line to $700 M

MANILA, Philippines - BDO Unibank Inc. has secured a $700-million credit line with Export-Import Bank of Korea to provide funds for Korean companies doing business in the Philippines.

The original amount of the credit line was $200 million but Korea Eximbank upsized the amount to $700 million, allowing the two banks to provide financial support to Korean businesses aggressively expanding operations in the Philippines.

Korea Eximbank deputy president Ki-Sub Nam said the credit facility was established and expanded to meet the growing demand of business expansion.

“Through the increase of the credit line, both banks secure sufficient measure to cope with the increasing financing demands of Korean companies operating in the Philippines, and local companies which have business relationships with Korean companies,” Ki-Sub said in a statement.

With this agreement, BDO becomes Korea Eximbank’s second largest partner in interbank services.

BDO senior vice president for institutional banking Walter C. Wassmer said as financial institutions, BDO and Korea Eximbank share the same objective to see enterprises continuously grow.

“We see this agreement as a catalyst to further strengthen our ability to assist Philippine and Korean corporations, which in turn will contribute to sustained development of the Philippine economy,” Wassmer added.

The Philippines is one of Korea’s significant cooperation partners as indicated by the trade volume between the two countries, which has increased 2.5 times over the past decade, reaching $12.5 billion in 2013.

Korea Eximbank is an official export credit agency providing comprehensive export credit and guarantee programs to support Korean enterprises conducting overseas business.

Since its establishment in 1976, the bank has actively supported Korea’s export-led economy and facilitated economy cooperation with foreign countries. Its primary services include export loans, trade finance, and guarantee programs structured to meet the needs of clients.