ShareKUWAIT: Burgan Bank announced signing a memorandum of understanding (MoU) with Korea Finance for Construction (KFINCO), making Burgan the sole representing bank in Kuwait for the South Korean co-op institution, as part of the latter’s strategic expansion across the Middle East. Representing Burgan Bank at the MoU signing were Tony Daher, Group Chief Executive Officer, while KFINCO was represented by Dr Eunjae Lee, Chairperson.
According to the partnership agreement, Burgan Bank will be offering KFINCO fronting services, whereby the bank will represent the company in issuing project-related guarantees on the back of their counter-guarantee. This comes as an extension of Burgan’s continued efforts to actively contribute to Kuwait’s economic growth and development by facilitating foreign investments and business cooperation across all sectors and industries.
“We are honored to be partnering with an esteemed institution such as KFINCO that boasts an impressive track record of facilitating construction projects for over 66,000 Korean construction companies worldwide,” said Abdulla Marafie, General Manager- Treasury Department. “As a dedicated contributor to the success of the New Kuwait: Vision 2035 strategy, Burgan Bank continues to be at the forefront of inviting and facilitating foreign investments in Kuwait, guaranteeing that our domestic economy grows on the back of industrial diversity and expansion.
Under the umbrella of this agreement, we look forward to playing a vital role in attracting construction mega projects that enhance the everyday quality of life for Kuwaitis as well as pin our country as a global destination.”
KFINCO, rated ‘A3’ by Moody’s, is a government-affiliated co-op that is supervised by the South Korean Ministry of Land, Infrastructure, and Transport. Owned by South Korean contractors, who will be bidding on construction projects in Kuwait with the help of Burgan Bank’s fronting services in Kuwait, KFINCO offers its 66,000 Korean company members guarantee and insurance services.
Under the fronting agreement between Burgan Bank and KFINCO, member Korean construction companies wishing to bid on projects in Kuwait will apply for a payment guarantee with KFINCO. After reviewing the application, KFINCO will request guarantee issuance and remit the fee to Burgan Bank, which in turn issues the guarantee to the overseas employer.
It serves to note that Burgan Bank continues to take proactive and dedicated steps toward reinforcing Kuwait’s economy by facilitating foreign investors’ financial dealings in Kuwait as well as supporting local entrepreneurship with SME-specific products and services.
