Kookmin Bank secures US$250 mln credit line

SEOUL, March 3 (Yonhap) -- South Korea's top lender Kookmin Bank said Tuesday it
has clinched US$250 million in credit lines from foreign lenders to help local
traders.
The credit deals with two U.S. lenders and two European banks carry an average
interest rate 3 percent higher than the London Interbank Offered Rate and mature
in 360 days at maximum, Kookmin Bank said. It did not disclose the name of the
foreign lenders.
The latest credit line comes on the heels of $410 million secured in similar
deals over the last three months, it said.
The money will be used to service trade finance to local exporters and importers,
the lender said.
Meanwhile, Hana Bank said in a separate statement it has secured a $50 million
loan from a Dutch lender to refinance maturing debt.
The loan from ING Bank NV pays a coupon of 2.7 percent higher than the London
Interbank Offered Rate and comes due in one year, the fourth largest lender said.
The money will be used to pay back maturing debt, as well as service trade
finance to local exporters and importers, it said.
The moves by Kookmin and Hana Bank come as local lenders strive to meet foreign
currency needs amid a weakening won, which has dropped nearly 20 percent against
the U.S. dollar so far this year. The decline has sharply raised dollar funding
costs, making it difficult for lenders to pay back debt and for local traders to
pay import bills.
pbr@yna.co.kr
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