With oil prices on the mend, there are prospects for a marked turnaround for the Saudi economy. The Kingdom has also been working on expanding its reach in Key Asian markets. Image Credit: Bloomberg

Dubai: Saudi Arabia's Ministry of Finance has secured a $3 billion export financing facility that would also come in handy in raising South Korea's trade prospects with the Gulf state.

Crédit Agricole CIB coordinated and structured the facility, which is supported by Korea Trade Insurance Corporation and the Korean Export Credit Agency - through its Strategic Partnership Programme to promote Korean exports to Saudi Arabia.

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What is an ECA?

Export credit agencies operate as the via media between governments and exporters to issue export-related guarantees for financing. In this particular deal, the two Korean entities provide the necessary support.

This is, incidentally, the second ECA-supported financing entered into by the Kingdom's Ministy of Finance, after the first one in July 2020. (That was also the first 'green' ECA financing in the region.)

Crédit Agricole CIB acted as exclusive ECA (export credit agency) co-ordinating bank, structuring and documentation bank, Agent, as well as bookrunner and mandated lead arranger for the transaction. "We are  excited to have led this milestone transaction, providing the Ministry of Finance with its largest ever ECA loan, through the seamless execution by our export finance teams in Seoul, Dubai and Paris," said André Gazal, Global Head of Export Finance at Crédit Agricole CIB.