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| Shinhan Financial Group Chairman Cho Yong-byoung, right, and Hana Financial Group Chairman Kim Jung-tai hold a signed memorandum of understanding to form a business alliance for global expansion, at Lotte Hotel in Seoul, May 25. Courtesy of Shinhan Bank |
By Lee Kyung-min
Shinhan Bank and Hana Bank said Thursday that they had signed a contract with the African Export-Import Bank (Afreximbank) to participate in a $1 billion (1.2 trillion won) syndicated loan arranged by Afreximbank.
The joint move by the two major Korean lenders came after Shinhan Financial Group and Hana Financial Group agreed to form an alliance for global expansion, May 25.
Provided by a group of lenders, a syndicated loan is structured, arranged and administered by one or several commercial banks or investment banks.
The loan will be managed by Afreximbank, a Cairo-based, pan-African multilateral trade finance institution created in 1993 under the auspices of the African Development Bank (ADB).
"This will be a great opportunity for both of us seeking to bolster overseas expansion," a Shinhan official said. "Africa, a region expected to grow quickly in the coming years, will be where our knowledge and experience of financing and development will be appreciated."
Shinhan was recognized for its overseas project financing experience involving wind energy and telecommunications, as well as commercial real estate and previous similar experience in syndicated loan projects.
Hana was recognized for managing the development of social overhead capital and renewable energy.
