Hyundai Secures Loan From Islamic Fund

Hyundai Oil Refinery Co. announced on April 21 that it secured a 200 million-dollar loan from Saudi Arabia's Islamic Fund for purchasing crude petroleum.
Hyundai said that a Saudi Arabian bank, NBC, is in charge of the loan with the participation of the British SCB and France UBAF banks. In Korea, Kookmin Bank, Hanbit bank and the Korea Exchange Bank have guaranteed payments.
It is unprecedented, in terms of the size of the loan.
The company said that this loan can be used only to purchase crude oil produced by Aramco, the state-run oil company of Saudi Arabia, with an interest rate set below prime. A source from Hyundai said, 'Oil imports are rapidly increasing since we acquired Hanwha Energy Co., and the oil of the Middle East supplies 80 percent of our imported petroleum. This loan, provides a stable supply of capital to buy petroleum.'
The Islamic Fund is one of the biggest finance companies in the Middle East including banks. Loan approvals are granted based on Islamic law by a religous committee.
Jooan Kang : jooan@joongang.co.kr