The European Bank for Reconstruction and Development (EBRD) and Export-Import Bank of Korea (KEXIM) yesterday agreed to boost their cooperation and increase joint financing in projects in the EBRD regions.

The two groups signed a Memorandum of Understanding to underscore their joint commitment at a ceremony in London on 6 November. According to the agreement, the two sides will work to "promote projects that support sustainable economic and social development from central Europe to central Asia and southern and eastern Mediterranean".

KEXIM is an official export credit agency providing comprehensive export credit and guarantee programs to support Korean enterprises in conducting overseas businesses.

The EBRD and Kexim have been working together since 1993 and co-financed a number of investment projects including the landmark transaction to build the Eurasia Tunnel under the Bosphorus straits in Istanbul, Turkey. In December 2012, the EBRD extended a US$ 150 million loan as part of financing package to complete the US$ 1.4 billion investment, which also financing and guarantees from KEXIM in the amount of US$ 280 million.

The two institutions are enhancing their cooperation to co-finance projects in such sectors as power, natural resources, renewable energy, transportation, wastewater treatment and telecommunications.

In the past year, the EBRD has been actively reaching out to potential investment partners from Asian countries including China, India and Japan, as well as Korea to support the Bank's operations in the EBRD region.