In Good Standing with Overseas Lenders

Woori Bank secures $300 mln in short-term loans from JP Morgan and Deutsche Bank

Woori Bank said on May 6 that it has successfully secured foreign exchange loans totaling $300 million; $200 million from JP Morgan and $100 million from Deutsche Bank, which brought the bank's total foreign loans this year to $400 million.
President Lee Chong-whi signed the loan agreement for $200 million with Gaby Abdelnour, chairman and CEO of JP Morgan Asia Pacific, and the agreement for $100 million with Bill Woodely, group COO-Asia Deutsche Bank in Hong Kong.
The bank's loans calmed the jitters over the Korean banks’ possible default in repaying foreign exchange loans including subordinated bonds call option.
The bank was able to secure the loans owing to ties it has maintained with international banks over the years. The loan from JP Morgan is repayable in two years at an interest rate of Libor plus 475 bp, while the Deutsche Bank loan is repayable in one year at Libor plus 379 bp.
Woori Bank officials said the bank's successful borrowing this time shows that foreign banks still have high confidence in the Korean bank. Woori Bank will continue to secure foreign exchange funds by diversifying both its borrowing techniques and the loan market in a stable manner to help export firms that have loans due to be repaid as well as provide support to SMEs.
So far the bank has been able to borrow short-term foreign exchange loans totaling $299 million with repayment terms ranging from two to six months and $540 million in loans with repayment terms of more than a year.
In the meantime, Woori Bank conducted an investor relations session for foreign banks operating in Korea at the Chosun Hotel on May 26. The bank wanted to assure that it has a very stable operation and has smooth relations with foreign banks, enabling them to secure foreign exchange loans from them at any time.
Among the foreign banks that participated in the IR session were Deutsche Bank, SMBC, Wachovia Bank, JP Morgan Chase and the Bank of China, with some 120 foreign bankers representing the 45 foreign banks with a presence in Korea.
Choi Seung-nam, head of the Woori Bank Global Business Unit, said he wanted to convey his appreciation to those representatives of foreign banks for their past support and that Woori wanted to maintain strong ties with those banks, especially in these difficult times.
A foreign bank official said Woori Bank's reception has been useful in exchanging information on how banks are trying to cope with the current financial problems and the foreign banks appreciate Woori Bank's efforts to try to maintain good relations with foreign banks by strengthening ties with them through such meetings so that it can easily secure foreign exchange funds.
In the meantime, Woori Bank held a special exhibition at its head office from May 13 to June 5 to show its long history as the oldest commercial bank in Korea, celebrating its 110th anniversary this year.
Daehan Chunil Bank was the name of the predecessor of Woori Bank, launched as Korea's first commercial bank during the waning period of the Jeoseon Dynasty (1395-1910).
At the opening of the exhibition were some 70 dignitaries including Rep. Na Kyung-won, former CEOs of Woori Bank and Director Choi Gwang-shik of the National Central Museum.
Woori's President Lee, in his opening speech, said the launching of the Daehan Chunil Bank was owed to the efforts of both the government and the private sector to defend Korea's sovereignty by modernizing the national economy. In line with the bank's ideal that support for the real economy is the foundation of economic development, the bank will be at the forefront of the effort to supply funds to SMEs and people in dire financial need. nw

President Lee Chong-whi of Woori Bank holds hands with Bill Woodley, group COO-Asia Deutsche Bank, right, and Gaby Abdelnour, chairman and CEO of JP Morgan Asia-Pacific, left.