KDB Project Finance business in Australia The Korea Development Bank July 6 th, 2017
Contents 1. Overview of KDB 2. KDB PF Business 3. KDB PF in Australia 4. KDB Representative Office in Sydney
1. Overview of KDB Established in 1954, KDB has accumulated experiences across a wide and growing range of business, aiming to become a financial engine that drives Korea's growth. Government Control & Support Founded in 1954 pursuant to the KDB Act 100% state-owned bank KDB s CEO appointed directly by the President of Korea Government responsible for maintaining KDB s solvency under the KDB Act Government 100% Financial Engine of Korea Supply industrial capital to develop Korean industries Provide a foundation for sustainable growth Stablize the Korean financial market Aa2 (Moody s) KDB Bank AA0 (S&P) AA- (Fitch) 84.2% 85% 99.9% Business Areas Corporate Banking Corporate Restructuring Consulting and Research Retail Banking Investment Banking (M&A, DCM, etc.), Alternative Investment (PF, PEF, etc.) KIAMCO KDB Life Insurance KDB Capital Note: KDB Life Insurance and KDB Capital are subject to potential divestment. 1
1. Overview of KDB (Core Business) KDB s core business consists of corporate banking, project finance, investment banking, private equity, corporate restructuring, and venture capital. Corporate Banking Leading provider of corporate loans with clients including almost all major Korean companies like Samsung, Hyundai, POSCO, LG, and Daewoo Financing partner of SMEs with high growth potential, especially high-tech companies with strong IP assets Project Finance Unchallenged leader in domestic project finance, arranging 64 projects valued at KRW13 tr in 2015 alone Ranked no. 4 in Asian PF loans market in 2015 Growing global platform with four overseas desks in Singapore, NY, London, and Beijing in addition to solid ties with MDBs Investment Banking No. 1 syndicated loans arranger in Korea for three straight years in both KRW- and foreign currency-denominated deals The Best Derivatives Provider of the Year in S. Korea by Asian Bankers in 2015 Only bank in Korea that provides both advisory and financing arrangement for M&A transactions Corporate Restructuring Most experienced bank in Korea to have successfully led the restructuring of major industry players such as DSME, Kumho Asiana, Hanjin, and Dongbu Emphasis on executing disciplined and proactive corporate restructuring to minimize social/economic costs and impacts Private Equity No. 2 PEF house in Korea with 16 funds under management and total commitments of over KRW8 tr, accounting for a 14% market share Anchor investor and LP in funds designed to foster Korea s financial sector and promote SMEs, investing in 44 funds with commitments of over KRW3.8 tr as of end-2015 Venture Capital KDB participated in establishing 34 venture funds valued at over KRW1 tr as of end-2015 to support ventures and start-ups with advanced technologies KDB created Global Partnership Fund to promote international expansion of Korean ventures 2
2. KDB PF Business Overview Leader of Korean PF Market - First to Introduce PF to Korea - Dominant market share in the domestic PF market Total A$115 Billion in 563 projects Expansion to Overseas PF Market - Overseas PF since 2006 - Actively participating in global transactions by cooperating with MDBs, ECAs - 2015 Overseas PF loan arrangement USD1.3 Billion Total A$ 6.8 Billion in 58 projects KDB PF in Global Market Global Market Share (PF) Global PFI/PPP PF Loans (2014) Asia PF Loans (2014) 1. SBI 6.7% 1. SBI 28.9% 2. KDB 6.4% 2. KDB 7.6% 3. SM FG 4.0% 3. IDFC 5.5% 4. Credit Agricole 3.6% 4. Bank of China 5.5% 5. MUFG 3.3% 5. SM FG 4.8% Liwa Petrochemical USD 6,345 million Petrochemical Sasol Ethanol Cracker USD 14,050million Petrochemical Plant Main Workscope - Refinery, Liquefaction Facility, Offshore Oil & Gas Plant - Railway, Tunnel, Logistics, Road, Environment - Petrochemical Plant, Power & Energy, - Natural Resources, Airport, Seaport 2016 Oman Surgil Project USD3,922million Gas Project 2012 Uzbekistan Joint Lead Arranger 2014 U.S.A Wiggins Island Coal Export Terminal USD 3,464million Coal Export Terminal 2011 Australia 3
2. KDB PF Business Project Finance Center Project Finance Dept I Project Finance Dept II Project Finance Dept III Railways Team Power Team Ⅰ Global PF Strategy Team Roads Team Power Team Ⅱ Overseas Infrastructure Team New Business Team (BTL) Energy & Natural Resources Team Overseas Real Estate Team Ports & Environmental Facilities Team Plant Team Domestic Real Estate Team Transportation Finance Unit * Largely dedicated to overseas projects Overseas PF Desks New York Singapore Transportation Team I (Shipping) London Beijing Transportation Team II (Aviation) Secondment to MDBs IFC EBRD ADB 4
3. KDB PF in Australia Participated Deals No. Project Year Project AMT KDB Participation State 1 New Grafton Correctional Center 2017 AUD 873 million AUD 78m New South Wales 2 WestConnex (M4 East) Toll Road Project 2017 AUD 3,714m AUD 89m New South Wales 3 West Connex New M5 Road Project 2016 AUD 4,792m AUD 65m New South Wales 4 Millmerran Coal Fired Power Plant 2013 AUD 213m AUD 59m Queensland 5 NSW Port Privatization 2013 AUD 3,945m AUD 137m New South Wales 6 Wiggins Island Coal Export Terminal 2011 USD 3,464m USD 298m Queensland 7 New Castle Coal Export Terminal 2011 USD 2,543m USD 25m New South Wales 8 Water Conversion Plant 2009 AUD 3,716m AUD 15m Victoria Bidded but Failed Deals (Including Dropped Deals) No. Project Year Project AMT KDB Participation State 1 NSW Ausgrid Asset Privatization 2016 AUD 18,258m AUD 300m New South Wales 2 NSW Transgrid Asset Privatization 2015 AUD 10,063m AUD 300m New South Wales 3 Roy Hill Iron Ore Mine Development 2013 USD 12,651m USD 150m Western Australia 5
4. KDB Representative Office in Sydney Sydney Representative Office Opening Date : December 8 th, 2015 Location : Suite 3304, MLC Centre, Martin Place, Sydney, NSW 2000 Tel : 02 9221 3638 Fax : 02 9221 9332 Thank you. 6
KDB s Global Network Europe Moscow North America New York Ireland London Frankfurt Hungary Asia Beijing Shenyang Seoul (HQ) Tokyo Quigdao Shanghai Guangzhou Hong Kong Africa Singapore Manila South America Tashkent Headquarters Sao Paulo Abu Dhabi Yangon South Pacific Branch (9) Bangkok Sydney Overseas Subsidiary (5) Ho Chi Minh Representative Office (8)