To provide financial support for South Korean companies with overseas contracts in the Middle East, the state-run Export-Import Bank of Korea has signed a loan agreement worth $5 billion, or nearly 6 trillion won, with Abu Dhabi National Oil Company, the state-owned oil company of the United Arab Emirates, officials said Monday. 

The framework agreement was made at a meeting between Eximbank CEO Bang Moon-kyu and Sultan Ahmed Al Jaber, CEO of the UAE's ADNOC, held Sunday at the oil company’s headquarters. Under the deal, Eximbank will issue credit to ADNOC’s projects if Korean companies win orders. 

“(The agreement) is expected to strengthen a cooperative relationship between the two institutions. Eximbank’s various financial programs will continue to help expand Korean companies’ overseas contracts,” Bang said. 

Through the financing, the state-run bank expects domestic companies to build stronger ties with their Middle Eastern counterparts and other network in the region which has a great growth potential, officials said.

Founded in 1971, ADNOC is one of the world’s leading energy producers specialized in exploration, production, storage, refining, and trading, as well as the development of petrochemical products. Local companies reportedly obtained contracts from the company worth a total of $6.8 billion since 2017, industry data showed.

By Choi Jae-hee (cjh@heraldcorp.com)