Hyunadi Oilbank raises 1.2 tln won for plant expansion

By Nam Kwang-sik
SEOUL, Oct. 9 (Yonhap) -- Hyundai Oilbank Corp., South Korea's fourth-largest oil refiner, said Thursday it has raised 1.2 trillion won (US$800 million) in a syndicated loan to expand a plant that processes heavy oil into transportation fuel by 2011.

Hyundai Oilbank has signed an agreement for the syndicated loan that was arranged
by state-run Korea Development Bank and five other lenders, the company said in a
statement.
Hyundai Oilbank took out the loan, which is payable in eight years with a
four-year grace period, the company said.
The refiner plans to spend 2.1 trillion won on expansion of the plant, which will
have the capacity to process 52,000 barrels a day. It will be built in Daesan, a
coastal city 137 kilometers southwest of Seoul.
If completed, the company's heavy-oil processing capacity will be raised to
116,000 barrels a day from the current 64,000 barrels, increasing the portion of
heavy oil processing units in its refining facilities to about 30 percent from
the current 17.4 percent, the company added.
ksnam@yna.co.kr
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