Trade Finance Credit Proposal

Table of Contents

I.Identification of counterparties3

II.II. Structure4

III. Description, Security and Support5

III.IV. Summary of Transaction7

L/C Structure8

IV.Annual Repayment Schedule9

V.Beneficiary Evaluation10

Ownership10

Operations:10

VI.Top Competitors11

VII.Major Products and Services11

VIII.Financial of Asia cement company Ltd12

IX.Country Risk14

Payment/Default14

South Korea Economic Overview16

Inflation17

Exchange Rate17

External Sector18

Trade Policy Overview18

Tariff and Import Taxes18

Political Outlook19

Economic Outlook19

Identification of counterparties

Guarantor

Borrower

Name

AMCO Constructions

Asia Cement

City and State

Seoul,

Seoul

Country + rating

South Korea (-A)

(AA)

Legal Status

Pvt. Ltd.

Listed Company

Established

2002

1957

Client since

2004

2004

Group

Business

Engineering and construction company

Cement Manufacturer

Key figures (US$)

12/31/2009

12/31/2009

Total assets

1,172,398,592,772

669,163, 669,163

Pre-Tax Profits

52,157,916,138

30,230,29898

No. of Lines

O/S

Granted

Request

Nature

Committed

Description

Maturity

1

5

0

60

New

C

Prepayment Under L/C based on Construction Material

90 days from Issuance

II. Structure

8. Delivery of Material

Contract

7. Advance payment 9. Payment into A/c

6. Promissory Note and 2. Assignment and proceed

Warehouse receipt

5. Credit Agreement

3. Undertaking4. Foreign Exchange support

III. Description, Security and Support

1. Initially contract is made between the parties and terms are clearly stated and agreed by both parties

2. Special account set up by Asia Cement to handle proceeds from sale of construction material with rights and ownership assigned to EIB. An irrevocable payment instruction controlling the routing of proceeds should also be issued.

3. Ministry of finance in Korea has been requested to undertake a waiver of sovereign immunity and non-contravention of IMF regulation.

4. The Central Bank of Korea agreed to provided currency support if Korean Wol were to decline due to unforeseen circumstances

5. As this is a syndicated deal led by EIB, a credit agreement has been set up for the banks involved. Below shows a hierarchy of the syndicated structure

6. Promissory note and Warehouse receipts will be transferred to EIB as collateral, and rights to prevent cross default to other debts should also be agreed. Due to the delay in mining during the expansion process, additional warehouse receipts from Asia Cement has been handed to EIB as lien.

7. After the above has been accomplished, the amount of $60million will be advanced to Asia Cement by EIB in 2 separate phases of $30million in 2011 and 2012.

8. Construction material from European Company will be delivered to Asia Cement.

9. The proceeds will be deposit into the special account created for the transaction. Where EIB will withdraw payments until transaction is completed.

IV. Summary of Transaction

Borrower of the Record

Asia Cement

Beneficiary

Asia Cement

Purchaser of the product from seller

European Company

Buyer

Asia Cement

Supply contracts:

Contract is between AMCO construction and European Construction material selling company for the supply of construction material.

Purchase Contract

N/A

Facility Amount

$60 million. (25 m bank share)

Structure

Proceeds used by Asia Cement to meet its construction requirement and working capital need

Facility

Committed one-off pre-finance facility: bank makes advances under specified irrevocable green clause L/Cs to Asia Cement.

Repayment

Within 2 years

Term:

Facility to end in 24months

Key Strengths:

The firm has big ongoing construction projects of Kia and Hyundai Motor.

L/C Structure5. Material Delivered

contract settlement by L/C

6. presentation of credit4. Confirmed L/C 2. Request to open L/C 8.Documentfor payment

L/C With Terms

7. Document after payment

Syndicate

Syndicate

EIB

EIB

Repayments

Outstanding

Repayment

Outstanding

Comments

1

Previous Balance

5

2

start

12.5

12.5

3

+ 90 Days

2.5

15

1.75

10.75

4

+ 180 Days

2.5

12.5

1.75

9

5

+ 270 Days

2.5

10

1.75

7.25

6

+ 365 Days

2.5

7.5

1.75

5.5

Annual Repayment Schedule

Beneficiary Evaluation

Ownership

Asia Cement is a Korea based cement manufacturing company engaged in providing products such as cement, ready-mixed concrete and dry mortar. The company has an annual production capacity of five million tons of cement and ...