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UAE's Mashreq inks $100m loan for Korea contractor

Mashreqbank, Al Ahli Bank of Kuwait, and Commercial Bank of Kuwait, will finance the facility for South Korea's SK Engineering and Construction

SK Engineering's work in the Middle East includes Qatar's Doha Metro project. [Representational image]
SK Engineering's work in the Middle East includes Qatar's Doha Metro project. [Representational image]

The UAE's Mashreqbank has signed off on a $100m (AED367.2m) loan for Korean contractor, SK Engineering and Construction. 

The syndicated medium-term loan will finance SK Engineering's general corporate requirements. 

A consortium comprising Mashreq, Al Ahli Bank of Kuwait (ABK), and Commercial Bank of Kuwait (CBK) were involved in financing the facility. 

Funding generated through the facility are likely to be used for SK Engineering's expansion plans in the Middle East.

Mashreq is the exclusive arranger and book-runner for the transaction, while the other two institutions acted as joint lead arrangers. 

Ho Eun Hong, vice president at SK Engineering, said: "We have executed various mega-sized projects in the region. 

"Both ABK and CBK have offered us reliable financial services including support for the Kuwait Oil Company's and Kuwait National Petroleum Company's projects.

"We are very confident that this deal will work as a milestone in strengthening our relationships with the banks."

SK Engineering's previous work in the Middle East includes the UAE's Ruwais Refinery Expansion and Bab Gas Compression projects, as well as Doha Metro's Red Line North Underground project in Qatar. 

The contractor is a part of SK Group, South Korea's third largest conglomerate. 

John Iossifidis, head of corporate and investment banking group, Mashreq said: "Over the last seven years, we have supported SK Engineering on 12 key infrastructure and oil and gas projects in the region.

"We are proud to support the company as the sole book runner for its syndicated loan facility here, which will provide it the necessary [backing] in relation to its upcoming financing requirements in the Middle East."


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Construction Week - Issue 760
Mar 10, 2020