Exclusive-South Korea lining up banks to help finance $22 billion arms sale to Poland

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N.S. flood victim surprised by apartment makeover | SaltWire - After hitting statutory limits on import-export lending, South Korea is gathering local banks to help Poland buy $22 billion worth of weapons in Seoul's largest arms sale, five people familiar with the matter told Reuters.

Two officials from a Korean defence company confirmed the syndicated loan plan. Two officials at South Korean banks said there would be loans, but did not specify the type. The discussions are a follow-up to the comprehensive arms agreement between the two nations signed last year, under which South Korean companies including Hyundai Rotem Co. and Hanwha Defense Systems Corp will supply tanks, howitzers and fighter jets.The South Korean government official did not elaborate on the size of the potential syndicated loan. Such a loan is provided by a group of lenders to a single borrower, often to finance large deals.

South Korea's defence exports totalled about $17 billion in 2022, according to its defence ministry, up from $7.25 billion a year before, as the war in Ukraine opened a door for Seoul's weapons exports.

 

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