Eximbank, IDB Invest sign $300 mil. MOU on Latin America coperation

Export-Import Bank of Korea (Eximbank) acting Chairman Ahn Jong-hyuk, right, and Inter-American Development Bank Group (IDB Group) President Ilan Goldfajn hold a memorandum of understanding on cooperation and joint financing in Latin America during a signing ceremony at Eximbank’s headquarters in Seoul’s financial district of Yeouido, Friday. Courtesy of Eximbank

The Export-Import Bank of Korea (Eximbank) and IDB Invest, the private-sector investment arm of the Inter-American Development Bank Group (IDB Group), have signed a $300 million deal to strengthen cooperation and joint financing in Latin America, Eximbank said Monday.

The IDB Group provides financial support to more than 20 borrowing member countries across Latin America and the Caribbean.

Eximbank said its acting Chairman Ahn Jong-hyuk and IDB Group President Ilan Goldfajn signed a memorandum of understanding (MOU) for the partnership at the bank’s headquarters in the financial district of Yeouido, Seoul, Friday.

The MOU was signed as Eximbank, a state-run lender, seeks to expand its role as a development finance institution (DFI) on the 20th anniversary of Korea’s membership in the IDB.

Eximbank also aims to reinforce its support for private-sector investment and sustainable development projects in Latin America.

A DFI is a public financial institution that provides funding to foster private-sector growth in developing countries.

Leading examples include the U.S. Development Finance Corporation (DFC), Germany’s DEG and the Netherlands’ FMO.

Under the MOU, Eximbank and IDB Invest will pursue up to $300 million in joint financing over the next five years, utilizing various loan products such as the Private-sector Development Investment Facility (PDIF).

Established by Eximbank in 2024, the PDIF is a DFI-dedicated financial instrument that supports projects expected to promote growth and economic cooperation in developing countries.

In particular, Eximbank and IDB Invest will work together to foster financial inclusion in developing countries, jointly identify high-quality projects in infrastructure, energy and digital transformation, and provide co-financing for climate action and supply chain resilience initiatives.

Furthermore, Eximbank plans to capitalize on the partnership to create business opportunities for Korean companies, helping them expand their presence in Latin America and diversify their export markets.

“This agreement is significant in that it establishes a strategic partnership between Eximbank and a leading development finance institution in the Americas,” Ahn said.

“We will continue to support Korean companies’ efforts to diversify export markets, while actively contributing to global agendas such as artificial intelligence-driven transformation and climate change response.”

In addition to the MOU, Eximbank, IDB Invest and other stakeholders plan to provide $1.59 billion in financing for the Panama Metro Line 3 underwater tunnel project, which was awarded to Hyundai Engineering & Construction.

Of that amount, Eximbank will purchase $590 million in export receivables by the end of this month. (Advertorial)