Exhibit C-2
[Translation]
(For Other Foreign Currency Payment Guarantee)
GUARANTEE AGREEMENT
(in connection with Euro Bonds, Yankee/Global Bonds and Samurai Bonds)
Obligor: Korea Electronic Power Corporation
[Translation]
Guarantee Agreement
Korea Electronic Power Corporation (the "Applicant") has requested The Korea
Development Bank (the "Bank") to guarantee, for the benefit of the holders (the
"Holders") of the Guaranteed Securities (as defined below), the Applicant's
obligations (the "Guaranteed Obligations") to the Holders under the securities
or indentures (collectively, the "Guaranteed Securities") issued or executed by
the Applicant as listed in Attachment 1 in accordance with the following terms
and conditions, and the Bank has agreed to issue the Securities Guarantees with
respect to Yankee/Global Bonds listed in Item 1 of Attachment 1, Deed Poll
Guarantees with respect to Euro Bonds listed in Item 2 of Attachment 1 and
Letter of Guarantees with respect to Samurai Bonds listed in Item 3 of
Attachment 1 (collectively, the "Payment Guarantees") in order to guarantee the
Guaranteed Obligations at the request of the Applicant. Therefore, the Applicant
hereby agrees that it will perform in good faith the terms and conditions of
this Guarantee Agreement and the General Terms and Conditions for Credit
Transactions of the Bank (the "General Terms and Conditions").
Article 1. Guarantee Amount
(1) The guarantee amount limit shall be as follows:
1. United States Dollars USD 3,917,181,871
2. UK Pound (UK POUND SYMBOL) 34,865,475
3. Japanese Yen (YEN SYMBOL) 121,877,850,000
4. Euro (EURO SYMBOL)28,083,012
5. Australian Dollars AUD 60,716,700
(2) The guarantee amount set forth in Paragraph (1) above shall be the
aggregate amount of the outstanding principal balance as of the Guarantee
Date (as defined below), which is specified in the Repayment Schedule of
the Guaranteed Obligations attached hereto plus the amount of interest
thereon to be incurred until the remaining maturity of the Guaranteed
Obligations as calculated at the interest rate specified in the relevant
Guaranteed Securities. If any part of the principal and interest of the
Guaranteed Obligations is paid thereafter, such guarantee amount shall
automatically be reduced by the sum of the outstanding principal balance
repaid by such payment plus the amount of interest thereon to be incurred
until the remaining maturity of the Guaranteed Obligations as calculated by
the interest rate specified in the relevant Guaranteed Securities;
provided,
that in the event such interest rate is changed, the guarantee amount shall
automatically be reduced or increased, as the case may be, and such
guarantee amount shall be calculated by such changed interest rate.
(3) In the event the Applicant becomes liable for the payment of any cost and
expense pursuant to the Guaranteed Securities, the guarantee amount limit
set forth in Paragraphs (1) above shall be deemed to have been increased by
such additional amount.
Article 2. Method and Term of Guarantee
(1) The Bank shall, at the request of the Applicant, issue the Payment
Guarantee to a person (i.e., the Fiscal Agent, Trustee or RCCB) designated
in such request by the Applicant.
(2) The term of the guarantee under this Guarantee Agreement shall be from the
date of issuance of the Payment Guarantees (the "Guarantee Date") to the
earlier of the maturity of the Guaranteed Securities as set forth in
Attachment 1 and the date by which the Put Option to be exercised (the
"Maturity of Guarantee").
(3) Upon the payment by the Applicant of the initial guarantee fee set forth in
Article 3, the Bank shall, at the request of the Applicant, issue an
unconditional, irrevocable, unsecured and unsubordinated payment guarantee.
Article 3. Guarantee Fee, etc.
(1) The Applicant shall pay to the Bank the guarantee fee as determined in each
paragraph of this Article.
(2) The Guarantee Fee Payment Date (as defined below) and the period for
calculation of the guarantee fee shall be as follows and the guarantee fee
shall be paid in Korean Won converted at the exchange rate in Article 8,
Paragraph (1) hereof:
1. The rate of the guarantee fee on the amount guaranteed by the Bank
shall be 0.05% p.a.;
2. The Applicant shall pay to the Bank the guarantee fee on each payment
date of principal and/or interest under the Guaranteed Securities (the
"Guarantee Fee Payment Date") after the Guarantee Date for the period
from (and including) that payment date of principal and/or interest to
the immediately previous day of the
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next payment date of principal and interest or, as the case may be, the
Maturity of Guarantee. Such guarantee fee shall be calculated on the
basis of the actual number of days elapsed and a year of 360 days and
shall be payable in advance;
3. Notwithstanding item 2 above, the first Guarantee Fee Payment Date
shall be the Guarantee Date. Provided that if any Guarantee Fee Payment
Date is not a banking day in Korea, the guarantee fee shall be paid in
the succeeding banking day of such Guarantee Fee Payment Date. In such
case, the period for calculation of guarantee fee set forth in item 2
shall not be adjusted; provided, that
(3) In the event the guarantee amount is increased due to changes in the
interest rate applicable to the Guaranteed Securities for the period of the
term of the guarantee hereunder, an additional guarantee fee as calculated
in the manner determined by the Bank shall be paid.
(4) The guarantee amount for the purpose of the calculation of the guarantee
fee under Paragraph (2) above shall be calculated as follows, provided,
that such guarantee amount calculated under this Article shall have no
effect on the amount guaranteed by the Bank pursuant to Article 1:
1. The principal guaranteed hereunder shall be the outstanding balance of
principal as of the date of issuance of the guarantee(initial guarantee
fee payment date) or the Guarantee Fee Payment Date;
2. The interest amount guaranteed hereunder shall be the aggregate of the
interest amount payable for each interest period from the payment date
of principal and/or interest immediately following the relevant
Guarantee Fee Payment Date until the Maturity of Guarantee calculated
by the outstanding balance of principal as of that Guarantee Fee
Payment Date multiplying the interest rate applicable for such
principal and/or interest payment date. (In this case, even if the
interest rate actually applicable is changed after the next payment
date of principal and/or interest, the guarantee fee already paid shall
not be adjusted.); provided, that the interest amount guaranteed
hereunder for the initial Guarantee Fee Payment Date shall be
calculated on the aggregate of the interest amount payable for each
interest period from the payment date of principal and/or interest
immediately preceding the Guarantee Date until the Maturity of
Guarantee in accordance with the method as set forth in this item on
the basis of the outstanding principal balance as of the Guarantee
Date.
(5) If the Applicant fails to pay the guarantee fee on any Guarantee Fee
Payment Date under
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this Article, it shall pay the default interest on such unpaid amount from
and including such Guarantee Fee Payment Date until the date on which
the payment of said sum is made in full at such rate and in such method
as determined by the Bank. Such default interest shall be computed on
the basis of the actual number of days elapsed and a year of 360 days.
(6) In the event that the Applicant becomes liable for the payment of any cost
and expense as set forth in Article 1, Paragraph 3, the Applicant shall pay
retroactively on the date on which guarantee obligation relating to such
cost and expense is performed additional guarantee fee calculated on a
basis of the guarantee amount which includes such cost and expenses as if
having been included since initial guarantee payment date during the period
from the initial Guarantee Payment Date to the date on which the guarantee
obligation relating to such cost and expense is performed.
Article 4. Performance of Primary Obligation & Prohibition of Amendment
(1) The Applicant shall deposit in the Bank the amount payable under the
Guaranteed Securities guaranteed by the Bank prior to the due date
thereunder or directly pay such amount on the due date in accordance with
the terms of the Guaranteed Securities in order to ensure that the Bank
will not incur any loss in connection with the Guaranteed Obligation
guaranteed by the Bank.
(2) The Applicant shall not amend or modify any terms and conditions of the
Guaranteed Securities, which might result in an increase of the guarantee
obligation of the Bank (such as an increase of the principal amount,
increase of the interest rate or change of currency and shortening of
maturity under the Guaranteed Securities) without the prior written consent
of the Bank.
(3) In the case of a breach of Paragraph (2) by the Applicant, the Bank shall
be responsible for the guarantee of the Guaranteed Obligations under the
Guaranteed Securities as if the terms and conditions of the Guaranteed
Securities have not been amended.
Article 5. Performance of Obligation under the Payment Guarantee
In the case that the Applicant fails to perform its obligation in
accordance with Article 4 or delays the report to the Bank as required
hereunder, the Bank may perform its obligation under the Payment Guarantees
without a prior notice to the Applicant and in such amount, manner and time
as the Bank may determine in its sole discretion.
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Article 6. Subrogation & Default Interest
(1) The Applicant agrees to immediately reimburse the Bank for any payment made
by the Bank under the Payment Guarantees pursuant to Article 5, including
without limitation, the amount of the Guarantee Obligation paid by the Bank
and tax, public levies, imposts, additional guarantee fee under Article 3,
Paragraph 6 or any other incidental expenses paid by the Bank to the
Holders and applicable government or taxation authority in connection with
the performance of its obligation under the Payment Guarantees.
(2) The Applicant shall pay default interest on the amount due and payable to
the Bank from the date on which the Bank performed its obligation under the
Payment Guarantees until the date on which such amount is actually paid at
the rate determined by the Bank on the basis of the actual number of days
elapsed and a year of 360 days.
Article 7. Acceleration
Upon occurrence of any of the events set forth in Article 7 (Acceleration)
of the General Terms and Conditions as a result of which it may be possible
for the Bank to perform the obligations under the Payment Guarantee, all of
the Applicant's obligations to the Bank shall immediately become due and
payable, and the Bank may exercise any and all rights including enforcement
of security rights.
Article 8. Exchange Rate
(1) The foreign exchange rate applicable to the guarantee fee is a initial rate
to be quoted by the Bank on the relevant Guarantee Fee Payment Date.
(2) If the Bank exercises its subrogation right pursuant to Articles 6 and 7,
the applicable exchange rate shall be the T/T selling rate to be quoted by
the Bank on the date on which the Bank exercises such subrogation rights.
In this connection, if the Applicant wishes to pay any amount in foreign
currency, the Applicant shall also pay the additional amount in liew of
exchange commission as determined by the Bank.
Article 9. Taxes & Public Imposts
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(1) The Applicant shall pay all taxes, levies and imposts imposed by the
applicable government or taxation authority in connection with the
performance by the Bank of its obligations of the Payment Guarantee
(excluding any tax imposed on the net income of the Bank by the Korean
taxation authority).
(2) Any and all payments made by the Applicant hereunder shall be made free and
clear of and without deduction for any taxes, levies, imposts set forth in
Paragraph (1) above. If the Applicant shall be required by law to make any
such deduction from any payment, the sum payable shall be increased as may
be necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this provision) the
Bank receives an amount equal to the sum it would have received had no such
deductions been made.
Article 10. Expenses
(1) Any expenses reasonably incurred by the Bank (including legal costs) in
connection with the issuance of the Payment Guarantee (excluding issuance
of the Payment Guarantee in the Korean standard form prescribed by the
Bank), management of follow-up registration matters with the U.S.
Securities and Exchange Commission ("SEC") or persuasion of and consent
from overseas creditors to discharge joint and several liability, shall be
borne by the Applicant in accordance with Attachment 3 (Statement of
Expense relating to Payment Guarantee).
(2) If the Payment Guarantee is not issued due to a failure by the Applicant to
discharge joint and several liability or to amend certain terms under the
Guaranteed Securities or any other cause not attributable to the Bank, or
if the guarantee amount under the Payment Guarantee decreases by 25% of the
maximum guarantee amount set forth in Article 1, then the Applicant shall
pay to the Bank the registration expenses (reasonably paid by the Bank for
the shelf registration with the SEC requested by the Applicant), which
shall be multiplied by the portion of such reduced amount in the maximum
guarantee amount under Article 1 at the time when the guarantee amount is
finally and actually determined (in the case that the Applicant fails to
obtain consent from certain creditors or to obtain final approval from the
court, it is deemed that the relevant Payment Guarantee is not issued),
provided, that, this paragraph shall not apply in the event the Bank
intends to issue securities on the remaining amount under the shelf
registration after the Payment Guarantees are issued.
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(3) The Applicant will pay any stamp tax, registration tax and any other
similar tax that is imposed in connection with the execution of this
Guarantee Agreement, issuance of the Payment Guarantees or any other
related documents.
Article 11. Currency & Exchange Rate for Payment
(1) When the Bank performs its obligations under the Payment Guarantee, the
Applicant shall pay a reimbursement amount (the "Reimbursement Amount") in
Korean Won or other currency designated by the Bank ("Foreign Currency").
(2) The Reimbursement Amount to be paid in Korean Won shall be calculated at
the T/T selling rate on the date on which such payment is made. Additional
amounts in lieu of exchange commission determined by the Bank shall be paid
in addition to the Reimbursement Amount to be paid in a Foreign Currency.
(3) In case that the Reimbursement Amount has been paid in Korean Won, the Bank
cannot make an overseas payment due to an imbalance between the supply and
demand of foreign exchange and the T/T selling rate applicable to actual
external payment is increased, the Applicant shall pay any deficiency as a
result thereof.
(4) In the event that the Reimbursement Payment is made in a currency other
than the Foreign Currency designated by the Bank for any reason and the
amount which the Bank receives after conversion of such Reimbursement
Payment into such Foreign Currency at the exchange rate determined by the
Bank is less than the amount which the Bank would have received had the
Reimbursement Payment been made in that Foreign Currency, the Applicant
shall pay such deficiency to the Bank.
(5) Paragraphs (1) through (4) of this Article shall apply if the Applicant
pays to the Bank the taxes, levies and imposts and any other incidental
expenses in connection with the performance by the Bank of the Guarantee
Obligation in accordance with Articles 9 and 10 hereof.
Article 12. Place of Payment
All sums payable to the Bank hereunder or under any document related
hereto, including but not limited to payments of principal and
interest, fees, costs or expenses, shall be paid during normal business
hours on the due date thereof at the Bank's office in Seoul or at
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such place or account as the Bank may inform to the Applicant.
Article 13. Notice
(1) In the event the principal obligation is discharged due to the Applicant's
payment, or renewal, set-off, exculpation, commingling, or expiry of
statute of limitations, etc, the Applicant shall immediately notify the
Bank thereof. The Applicant shall not raise any objection to disadvantages
with respect to the guarantee fee due to delay of such notice.
(2) In the event that the Applicant receives a demand from any Holder to
perform its obligation or that there occurs any event (such as changes in
security for its obligation or the period of prescription) which may affect
the Bank's obligations hereunder, the Applicant shall immediately notify
the Bank thereof.
(3) The Applicant shall immediately reimburse the Bank for any amount paid by
the Bank at the request of the Holder to perform the Guaranteed Obligation
as a result of the negligence of the Applicant in notifying the Bank in
accordance with Paragraphs (1) and (2) above.
(4) If the Applicant expects that an Event of Default under the Guaranteed
Securities will occur or it fails to perform its obligation under the
Guaranteed Securities, the Applicant will immediately notify the Bank
thereof.
(5) For the calculation of the guarantee fee, the Applicant shall notify in
advance the details of the amount of principal and interest and calculation
of guarantee fee, specifying the principal amount, interest rate and
interest period, which are with respect to the immediate succeeding
principal and/or interest payment date under the Guaranteed Securities two
(2) banking days prior to each Guarantee Fee Payment Date.
(6) Any matter in connection with the subsequent merger, spin-off of the
Applicant and its subsidiary (such as a spin-off of the Applicant's power
distribution business division, or change in privatization policy of the
Korean government), which may materially affect the claims of the Bank
against the Applicant shall be immediately notified to the Bank for prior
consultation.
(7) The Bank shall immediately notify the Applicant upon occurrence of any of
the following events:
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1. Any Payment Guarantee issued by the Bank ceases to be in full force
and effect or is amended or modified;
2. The Republic of Korea ("Korea") declares a moratorium on the
payment of any obligations of Korea for the payment or repayment of
money borrowed which is denominated in a currency other than Korean
Won (the "External Indebtedness") or becomes obligated to repay
prematurely any sums of such External Indebtedness as a result of a
default;
3. Korea ceases to own or control the Bank directly or indirectly, or
fails to provide financial support to the Bank in accordance with
Article 44 of The Korea Development Bank Act; or
4. The Bank is bankrupt, liquidated, dissolved or its material
business is suspended or the court appoints a receiver in respect
of the Bank.
Article 14. Contribution and Indemnification
(1) The Applicant is responsible for the procedures for the waiver of joint and
several liability under Article 530-9 of the Commercial Code and the
amendment to certain terms under the underlying agreement with respect to
the Guaranteed Obligations and the Bank only has a responsibility under
this Agreement and the Payment Guarantees.
(2) With respect to each of items 1 through 4 below which may arise in
connection with the exemption from joint and several liability among the
Applicant and the Gencos and the amendment to the terms under the
Guaranteed Securities, the Applicant hereby agrees to hold harmless and
indemnify the Bank from and against any loss, cost, action or claim
whatsoever arising out of or based upon (i) any untrue statement contained
therein, (ii) the omission to state any material fact necessary to make the
statements therein not misleading, (iii) any failure by the Applicant to
perform its obligation thereunder, (iv) any failure by the Applicant to
comply therewith, or (v) any other reason not attributable to the Bank.
1. Any matter referred to in the Guaranteed Securities, any and all
agreements relating to the Guaranteed Securities (excluding the
Payment Guarantees) or any and all instruments and agreements
providing for amendment, variation or waiver of the Guaranteed
Securities or any and all agreements relating thereto
(collectively, the "Related Documents");
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2. Any matters relating to the process of obtaining consents for the
waiver of joint and several liability and the amendment to default
provision, including but not limited to convening of the
bondholders' meeting or obtaining approval from a competent court
for that purpose;
3. Any matters relating only to the Applicant but not relating to the
Bank including those relating to the documents registered with or
submitted to the SEC or other foreign securities regulatory
authority by the Applicant; and/or
4. Any matters relating to the information provided by the Applicant
to the Bank, which is or will be contained in the documents
registered with or submitted to the SEC or other foreign securities
regulatory authority by the Bank.
(3) The Bank hereby agrees to hold harmless and indemnify the Applicant from
and against any loss, cost, action or claim whatsoever arising out of or
based upon (i) any untrue statement contained in any document prepared by
the Bank (the "KDB Documents"), (ii) the omission to state any material
fact necessary to make the statements in the KDB Documents not misleading,
(iii) any failure by the Bank to perform its obligation, (iv) any failure
by the Bank to comply therewith, or (v) any other reason not attributable
to the Applicant, in connection with the performance of the Bank's
obligations under the Payment Guarantees.
Article 15. General Terms and Conditions for Credit Transactions
The General Terms and Conditions for Credit Transactions of the Bank
shall apply to any matter not described in this Guarantee Agreement. In
this case, the Applicant shall be deemed an obligor as defined in
Article 1 of the General Terms and Conditionsfor Credit Transaction.
Article 16. Representations and Warranties
(1) The Applicant has taken all necessary corporate actions to execute, deliver
and perform its obligations under the Related Documents in accordance with
the applicable laws and regulations and its Articles of Incorporation or
internal regulations. No consent, approval or authorization of, or filing
or registration with, any governmental agency or body, any shareholder of
the Applicant or any other person is required for the execution, delivery
and performance of the Related Documents.
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(2) The execution, delivery and performance of the Related Documents do not and
will not conflict with or, result in a violation of, the provisions of any
statue, order, rule, ordinance, decree, governmental rule or any similar
laws and regulations by which the Applicant is bound or to which any of the
property or assets of the Applicant is subject, nor will such actions
result in any violation of, or conflict with any agreement, mortgage,
guarantee or other arrangement by which the Applicant is bound or to which
any of the property or assets of the Applicant is subject.
(3) The Applicant has all necessary power and authority to execute, deliver and
perform its obligations under the Related Documents, and upon the execution
and delivery of the Related Documents, the Related Documents will
constitute legal, valid and binding obligations of the Applicant,
enforceable against the Applicant in accordance with their respective
terms, subject, as to enforceability, to bankruptcy, corporate
reorganization, composition, moratorium or other similar laws generally
affecting the creditors' rights.
(4) The information contained in any agreement, notice, certificate, statement
or any other related documents provided by or on behalf of the Applicant to
the Holders conforms in all material respects to, and does not conflict
with, the description concerning the Applicant contained in the prospectus
and prospectus supplement which were submitted by the Bank to the SEC and
other foreign securities regulatory authority.
Article 17. Covenants
(1) The parties hereto shall undertake to comply with, and perform its
obligations under, the Guarantee Agreement and the Related Documents.
(2) If the parties hereto fail to, or threaten to fail to, perform any of its
obligations under this Guarantee Agreement and any Related Documents, it
shall promptly give written notice thereof to the Bank.
(3) Any party hereby agrees not to make any amendments, variation or waiver of
the terms of the Guaranteed Securities and any and all agreements relating
thereto without the prior consent of the other party.
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Article 18. Governing Law and Jurisdiction
(1) This Guarantee Agreement and the General Terms and Conditions shall be
governed by, and construed in accordance with, the laws of the Republic of
Korea.
(2) Any dispute arising out of or in connection with this Guarantee Agreement
shall be brought before the Seoul District Court. Notwithstanding the
foregoing, the parties hereto are entitled to institute any legal
proceedings with any competent court in or outside Korea in connection with
any dispute arising out of or in connection with this Guarantee Agreement.
(3) In the event of any dispute, breach, claim or conflict with respect to or
between the Korean language version and any other language version of this
Guarantee Agreement, the Korean language version shall prevail.
(4) In the event that there is any conflict between the provisions of this
Guarantee Agreement and the General Terms and Conditions and those of the
Payment Guarantee, the Payment Guarantee shall prevail.
November 13, 2002
Applicant and
Primary Obligor Korea Electric Power Corporation (seal affixed)
Guarantor Korea Development Bank (seal affixed)
--------------------------
(Verification of Seal)
--------------------------
--------------------------
--------------------------
To. The Korea Development Bank
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- -------------------------------------- -------------------- -------------------
I/We hereby confirm that the receipt Obligor and (seal)
of the copies of each of the General Applicant
Terms and Conditions of Credit ------------------- --------------------
Transactions and the substantial Joint & Several (seal)
provisions have been explained by the Guarantor
Bank and understood by me/ourselves. ------------------- --------------------
Joint & Several (seal)
Guarantor
- -------------------------------------- -------------------- --------------------
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(Attachment 1)
Details of Guaranteed Obligations
1. Yankee /Global Bond
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Name of Bond 93Yankee 2nd 96Yankee 3-1st 96Yankee 3-2nd 96Yankee 4th
--------------------------------------------------------------------------------------------------------
Issuer KEPCO KEPCO KEPCO KEPCO
--------------------------------------------------------------------------------------------------------
Provider Lehman Salomon Salomon Goldman
--------------------------------------------------------------------------------------------------------
Currency USD USD USD USD
--------------------------------------------------------------------------------------------------------
Issue Amount 350,000,000 139,842,639 52,559,649 70,640,000
(Balance)
--------------------------------------------------------------------------------------------------------
Coupon Rate 7.75%(30/360) 7.4%(30/360) Up to Put Date 6%(30/360)
0%,(30/360)
--------------------------------------------------------------------------------------------------------
Provision Period 20 years 20 years 100 years 30 years
--------------------------------------------------------------------------------------------------------
Repayment Method Repayment in lump Amortizing Repayment in lump Repayment in lump
sum at maturity sum at maturity sum at maturity
--------------------------------------------------------------------------------------------------------
Borrowing Date Apr. 14, 1993 Apr. 1, 1996 Apr. 1, 1996 Dec. 6, 1996
--------------------------------------------------------------------------------------------------------
Maturity Date Apr. 1, 2013 Apr. 1, 2016 Apr. 1, 2096 Dec. 1, 2026
(Put date: (Put date: Dec.1,
Apr.1,2016) 2006)
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Name of Bond 97Yankee 5th 97Yankee 6th 93Global 1st 00Global 2nd
--------------------------------------------------------------------------------------------------------
Issuer KEPCO KEPCO KEPCO KEPCO
--------------------------------------------------------------------------------------------------------
Provider Goldman Lehman Lehman Deutsche
--------------------------------------------------------------------------------------------------------
Currency USD USD USD USD
--------------------------------------------------------------------------------------------------------
Issue Amount 300,000,000 200,000,000 1,350,000,000 300,000,000
(Balance)
--------------------------------------------------------------------------------------------------------
Coupon Rate 7%(30/360) 6.75%(30/360) 6.375%(30/360) 8.25%(30/360)
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Provision Period 30 years 30 years 10 years 5 years
--------------------------------------------------------------------------------------------------------
Repayment Method Repayment in lump Repayment in lump Repayment in lump Repayment in lump
sum at maturity sum at maturity sum at maturity sum at maturity
--------------------------------------------------------------------------------------------------------
Borrowing Date Jan. 31, 1997 Aug. 4, 1997 Dec. 2, 1993 Mar. 31, 2000
--------------------------------------------------------------------------------------------------------
Maturity Date Feb. 1, 2027 Aug. 1, 2027 Dec. 1, 2003 March 15, 2005
(Put date: (Put
Feb.1,2007) date:Aug.1,2004)
--------------------------------------------------------------------------------------------------------
2. Euro Bond
--------------------------------------------------------------------------------------------------------
Name of Bond 97Euro 3-1st 97Euro 3-2nd 97Euro 4th 97Euro 5th
--------------------------------------------------------------------------------------------------------
Issuer KEPCO KEPCO KEPCO KEPCO
--------------------------------------------------------------------------------------------------------
Provider UBS UBS JP Morgan JP Morgan
--------------------------------------------------------------------------------------------------------
Currency JPY USD JPY JPY
--------------------------------------------------------------------------------------------------------
Issue Amount 2,560,000,000 21,000,000 5,000,000,000 5,000,000,000
(Balance)
--------------------------------------------------------------------------------------------------------
Coupon Rate 2.75%(30/360) 6ML+0.31% Y2.92%(30/360) Y2.5%(30/360)
(A/360)
--------------------------------------------------------------------------------------------------------
Provision Period 7 years 7 years 7 years 7 years
--------------------------------------------------------------------------------------------------------
Repayment Method Repayment in lump Repayment in lump Repayment in lump Repayment in lump
sum at maturity sum at maturity sum at maturity sum at maturity
--------------------------------------------------------------------------------------------------------
Borrowing Date June 27, 1997 June 27, 1997 July 1, 1997 Aug. 28, 1997
--------------------------------------------------------------------------------------------------------
Maturity Date June 27, 2004 June 27, 2004 July 1, 2004 July 1, 2004
--------------------------------------------------------------------------------------------------------
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Name of Bond 97Euro 6-1st 97Euro 6-2nd 97Euro 7-3rd 99Euro 9th
--------------------------------------------------------------------------------------------------------
Issuer KEPCO KEPCO KEPCO KEPCO
--------------------------------------------------------------------------------------------------------
Provider Merrill Merrill UBS CSFB 1
--------------------------------------------------------------------------------------------------------
Currency USD USD GBP EUR
--------------------------------------------------------------------------------------------------------
Issue Amount 55,000,000 95,000,000 24,467,000 25,183,000
(Balance)
--------------------------------------------------------------------------------------------------------
Coupon Rate 7.11%(30/360) 7.05%(30/360) 8.5%(30/360) 5.75%(A/365)
--------------------------------------------------------------------------------------------------------
Provision Period 7 years 10 years 10 years 5 years
--------------------------------------------------------------------------------------------------------
Repayment Method Repayment in lump Repayment in lump Repayment in lump Repayment in lump
sum at maturity sum at maturity sum at maturity sum at maturity
--------------------------------------------------------------------------------------------------------
Borrowing Date Sep. 26, 1997 Sep. 26, 1997 Apr. 28, 1997 July 26, 1999
--------------------------------------------------------------------------------------------------------
Maturity Date Sep. 26, 2004 Sep. 26, 2007 Apr. 28, 2007 July 26, 2004
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Name of Bond 00Euro 10th 97FRN 3-1st 97FRN 3-2nd
--------------------------------------------------------------------------------------------------------
Issuer KEPCO KEPCO KEPCO
--------------------------------------------------------------------------------------------------------
Provider UBS 2 AIG FP AIG FP
--------------------------------------------------------------------------------------------------------
Currency JPY USD USD
--------------------------------------------------------------------------------------------------------
Issue Amount 30,000,000,000 96,500,000 50,000,000
(Balance)
--------------------------------------------------------------------------------------------------------
Coupon Rate 2.1%(30/360) 6ML+1.65(A/360) 6ML+0.6(A/360)
--------------------------------------------------------------------------------------------------------
- 3 -
--------------------------------------------------------------------------------------------------------
Provision Period 5 years 6 years 7 years
--------------------------------------------------------------------------------------------------------
Repayment Method Repayment in lump sum at Repayment in lump sum at Repayment in lump sum at
maturity maturity maturity
--------------------------------------------------------------------------------------------------------
Borrowing Date July 27, 2000 Nov. 5, 1999 Oct. 28, 1997
--------------------------------------------------------------------------------------------------------
Maturity Date July 27, 2005 Nov. 5, 2005 Oct. 28, 2004
--------------------------------------------------------------------------------------------------------
3. Samurai Bond
--------------------------------------------------------------------------------------------------------
Name of Bond 95Samurai 4th 95Samurai 5th 96Dual Currency 96Dual Currency 1-2nd
1-1st
--------------------------------------------------------------------------------------------------------
Issuer KEPCO KEPCO KEPCO KEPCO
--------------------------------------------------------------------------------------------------------
Provider Daiwa Nomura Nomura Nomura
--------------------------------------------------------------------------------------------------------
Currency JPY JPY JPY JPY
--------------------------------------------------------------------------------------------------------
Issue Amount 27,000,000,000 14,500,000,000 10,000,000,000 21,000,000,000
(Balance)
--------------------------------------------------------------------------------------------------------
Coupon Rate 4.15%(30/360) 3.4%(30/360) 3.8%(30/360) 4.0%(30/360)
--------------------------------------------------------------------------------------------------------
Provision Period 10 years 10 years 10 years 10 years
--------------------------------------------------------------------------------------------------------
Repayment Method Repayment in lump Repayment in lump Repayment in lump Repayment in lump
sum at maturity sum at maturity sum at maturity sum at maturity
--------------------------------------------------------------------------------------------------------
Borrowing Date Apr. 1, 1995 Sep. 7, 1995 Jan. 10, 1996 Jan. 30, 1996
--------------------------------------------------------------------------------------------------------
Maturity Date Apr. 11, 2005 Sep. 7, 2005 Jan. 10, 2006 Jan. 30, 2006
--------------------------------------------------------------------------------------------------------
Guarantee Amount may be changed according to the privatization plan of the
government, consent of creditors and terms of approval/license by the court etc.
- 4 -
(Attachment 2)
Repayment Schedule of Principal and Interest of Guaranteed Obligations
1. General Details
Based on outstanding balance as at the end of Dec. , 2002
- -----------------------------------------------------------------------------------------------------------------------------------
No Name of Bond Repayment Date Currency Balance of Principal Interest Residual Interest
For 1st int. period Up to maturity
- -----------------------------------------------------------------------------------------------------------------------------------
1 Yankee 2nd Apr. 1, 2013 USD 350,000,000 13,562,500 284,812.500.00
- -----------------------------------------------------------------------------------------------------------------------------------
2 Yankee 3rd (1) Apr. 1, 2016 USD 139,842,639 To be changed 83,660,792.88
(to be changed)
- -----------------------------------------------------------------------------------------------------------------------------------
3 Yankee 3rd (2) Apr. 1, 1996 USD 52,559,649 To be changed -
(to be changed)
- -----------------------------------------------------------------------------------------------------------------------------------
4 Yankee 4th Dec. 1, 2026 USD 70,640,000 2,119,200 16,953,600.00
- -----------------------------------------------------------------------------------------------------------------------------------
5 Yankee 5th Feb. 1, 2027 USD 300,000,000 10,500,000 94,500,000.00
- -----------------------------------------------------------------------------------------------------------------------------------
6 Yankee 6th Aug. 1, 2027 USD 200,000,000 6,750,000 27,000,000.00
- -----------------------------------------------------------------------------------------------------------------------------------
7 Global 1st Dec. 1, 2003 USD 1,350,000,000 43,031,250 86,062,500.00
- -----------------------------------------------------------------------------------------------------------------------------------
8 Global 2nd Mar. 15, 2005 USD 300,000,000 12,375,000 61,875,000,.00
- -----------------------------------------------------------------------------------------------------------------------------------
9 Euro 3rd (1) June 27, 2004 JPY 2,560,000,000 35,200,000 105,600,000
- -----------------------------------------------------------------------------------------------------------------------------------
10 Euro 3rd (2) June 27, 2004 USD 21,000,000 233,494 710,858.75
- -----------------------------------------------------------------------------------------------------------------------------------
11 Euro 4th July 1, 2004 JPY 5,000,000,000 146,000,000 292,000,000
- -----------------------------------------------------------------------------------------------------------------------------------
12 Euro 5th July 1, 2004 JPY 5,000,000,000 125,000,000 250,000,000
- -----------------------------------------------------------------------------------------------------------------------------------
13 Euro 6th (1) Sep. 26, 2004 USD 55,000,000 1,955,250 7,821,000.00
- -----------------------------------------------------------------------------------------------------------------------------------
14 Euro 6th (2) Sep. 26, 2007 USD 95,000,000 3,348,750 33,487,500.00
- -----------------------------------------------------------------------------------------------------------------------------------
15 Euro 7th (3) Apr. 28, 2007 GBP 24,467,000 2,079,695 10,398,475.00
- -----------------------------------------------------------------------------------------------------------------------------------
16 Euro 9th July 26, 2004 EUR 25,183,000 1,448,023 2,900,012.18
- -----------------------------------------------------------------------------------------------------------------------------------
17 Euro 10th July 27, 2005 JPY 30,000,000,000 315,000,000 1,890,000,000
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
18 FRN 3rd (1) Nov. 5, 2005 USD 96,500,000 1,794,900 10,928,946.67
- -----------------------------------------------------------------------------------------------------------------------------------
19 FRN 3rd (2) Oct. 28, 2004 USD 50,000,000 680,938 2,765,362.85
- -----------------------------------------------------------------------------------------------------------------------------------
20 Samurai 4th Apr. 11, 2005 JPY 27,000,000,000 560,250,000 2,801,250,000
- -----------------------------------------------------------------------------------------------------------------------------------
21 Samurai5th Sep. 7, 2005 JPY 14,500,000,000 246,500,000 1,479,000,000
- -----------------------------------------------------------------------------------------------------------------------------------
22 Dual Currency1-1st Jan. 10, 2006 JPY 10,000,000,000 AUD 5,053,000 AUD19,159,800.00
- -----------------------------------------------------------------------------------------------------------------------------------
23 Dual Currency 1- Jan. 30, 2006 JPY 21,000,000,000 AUD 10,803,660 AUD 41,556,900.00
2nd
- -----------------------------------------------------------------------------------------------------------------------------------
- 2 -
2. Detailed Repayment Schedule
(1) Name of Bond : Yankee 2nd
(Unit : US$)
--------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
--------------------------------------------------------------------------------------------------------------
1 USD 03.04.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
2 USD 03.10.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
3 USD 04.04.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
4 USD 04.10.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
5 USD 05.04.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
6 USD 05.10.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
7 USD 06.04.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
8 USD 06.10.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
9 USD 07.04.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
10 USD 07.10.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
11 USD 08.04.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
12 USD 08.10.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
13 USD 09.04.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
14 USD 09.10.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
15 USD 10.04.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
16 USD 10.10.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
17 USD 11.04.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
18 USD 11.10.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
19 USD 12.04.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
20 USD 12.10.01 - 13,562,500.00 350,000,000
--------------------------------------------------------------------------------------------------------------
21 USD 13.04.01 350,000,000 13,562,500.00 -
--------------------------------------------------------------------------------------------------------------
- 2 -
(2) Name of Bond : Yankee 3-1st
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------
1 USD 02.10.01 - - 139,842,639.16 amortizing
- ----------------------------------------------------------------------------------------------------------------
2 USD 03.04.01 3,102,738.20 5,173,515.96 136,739,900.96
- ----------------------------------------------------------------------------------------------------------------
3 USD 03.10.01 3,219,305.16 5,058,663.22 133,520,595.80
- ----------------------------------------------------------------------------------------------------------------
4 USD 04.04.01 3,337,586.34 4,940,382.04 130,183,009.46
- ----------------------------------------------------------------------------------------------------------------
5 USD 04.10.01 3,461,010.18 4,816,958.20 126,721,999.28
- ----------------------------------------------------------------------------------------------------------------
6 USD 05.04.01 3,589,576.68 4,688,391.70 123,132,422.60
- ----------------------------------------------------------------------------------------------------------------
7 USD 05.10.01 3,723,285.84 4,556,396.76 119,409,136.76
- ----------------------------------------------------------------------------------------------------------------
8 USD 06.04.01 3,858,709.22 4,417,544.94 115,550,427.54
- ----------------------------------------------------------------------------------------------------------------
9 USD 06.10.01 4,002,703.70 4,275,264.68 111,547,723.84
- ----------------------------------------------------------------------------------------------------------------
10 USD 07.04.01 4,151,840.84 4,127,841.76 107,395,883.00
- ----------------------------------------------------------------------------------------------------------------
11 USD 07.10.01 4,304,406.42 3,973,561.96 103,091,476.58
- ----------------------------------------------------------------------------------------------------------------
12 USD 08.04.01 4,463,828.88 3,814,139.50 98,627,647.70
- ----------------------------------------------------------------------------------------------------------------
13 USD 08.10.01 4,628,394.00 3,649,574.38 93,999,253.70
- ----------------------------------------------------------------------------------------------------------------
14 USD 09.04.01 4,799,816.00 3,478,152.38 89,199,437.70
- ----------------------------------------------------------------------------------------------------------------
15 USD 09.10.01 4,978,094.88 3,299,873.50 84,221,342.82
- ----------------------------------------------------------------------------------------------------------------
16 USD 10.04.01 5,161,516.42 3,116,451.96 79,059,826.40
- ----------------------------------------------------------------------------------------------------------------
17 USD 10.10.01 5,351,794.84 2,924,459.32 73,708,031.56
- ----------------------------------------------------------------------------------------------------------------
18 USD 11.04.01 5,552,358.58 2,727,324.02 68,155,672.98
- ----------------------------------------------------------------------------------------------------------------
19 USD 11.10.01 5,756,350.76 2,521,617.62 62,399,322.22
- ----------------------------------------------------------------------------------------------------------------
20 USD 12.04.01 5,968,914.04 2,309,054.34 56,430,408.18
- ----------------------------------------------------------------------------------------------------------------
21 USD 12.10.01 6,190,048.42 2,087,919.96 50,240,359.76
- ----------------------------------------------------------------------------------------------------------------
22 USD 13.04.01 6,418,039.68 1,858,214.48 43,822,320.08
- ----------------------------------------------------------------------------------------------------------------
23 USD 13.10.01 6,658,030.48 1,621,652.12 37,164,289.60
- ----------------------------------------------------------------------------------------------------------------
24 USD 14.04.01 6,901,449.72 1,374,804.44 30,262,839.88
- ----------------------------------------------------------------------------------------------------------------
- 3 -
- ----------------------------------------------------------------------------------------------------------------
25 USD 14.10.01 7,158,582.72 1,119,385.66 23,104,257.16
- ----------------------------------------------------------------------------------------------------------------
26 USD 15.04.01 7,424,286.82 855,395.78 15,679,970.34
- ----------------------------------------------------------------------------------------------------------------
27 USD 15.10.01 7,696,847.80 579,406.36 7,983,122.54
- ----------------------------------------------------------------------------------------------------------------
28 USD 16.04.01 7,983,122.54 294,845.84 0.00 -
- ----------------------------------------------------------------------------------------------------------------
(3) Name of Bond : Yankee 3-2nd
(Unit : US$)
- -----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- -----------------------------------------------------------------------------------------------------------------------
1 USD 02.10.01 - - 52,559,649.28 Accreted value
- -----------------------------------------------------------------------------------------------------------------------
2 USD 03.04.01 - - 54,996,244.48
- -----------------------------------------------------------------------------------------------------------------------
3 USD 03.10.01 - - 57,545,297.92
- -----------------------------------------------------------------------------------------------------------------------
4 USD 04.04.01 - - 60,213,057.28
- -----------------------------------------------------------------------------------------------------------------------
5 USD 04.10.01 - - 63,003,687.68
- -----------------------------------------------------------------------------------------------------------------------
6 USD 05.04.01 - - 65,923,436.80
- -----------------------------------------------------------------------------------------------------------------------
7 USD 05.10.01 - - 68,978,552.32
- -----------------------------------------------------------------------------------------------------------------------
8 USD 06.04.01 - - 72,175,281.92
- -----------------------------------------------------------------------------------------------------------------------
9 USD 06.10.01 - - 75,521,955.84
- -----------------------------------------------------------------------------------------------------------------------
10 USD 07.04.01 - - 79,020,656.64
- -----------------------------------------------------------------------------------------------------------------------
11 USD 07.10.01 - - 82,683,879.68
- -----------------------------------------------------------------------------------------------------------------------
12 USD 08.04.01 - - 86,515,790.08
- -----------------------------------------------------------------------------------------------------------------------
13 USD 08.10.01 - - 90,526,800.64
- -----------------------------------------------------------------------------------------------------------------------
14 USD 09.04.01 - - 94,723,159.04
- -----------------------------------------------------------------------------------------------------------------------
15 USD 09.10.01 - - 99,113,195.52
- -----------------------------------------------------------------------------------------------------------------------
16 USD 10.04.01 - - 103,707,322.88
- -----------------------------------------------------------------------------------------------------------------------
17 USD 10.10.01 - - 108,513,871.36
- -----------------------------------------------------------------------------------------------------------------------
18 USD 11.04.01 - - 113,543,253.76
- -----------------------------------------------------------------------------------------------------------------------
- 4 -
- -----------------------------------------------------------------------------------------------------------------------
19 USD 11.10.01 - - 118,805,882.88
- -----------------------------------------------------------------------------------------------------------------------
20 USD 12.04.01 - - 124,312,171.52
- -----------------------------------------------------------------------------------------------------------------------
21 USD 12.10.01 - - 130,074,615.04
- -----------------------------------------------------------------------------------------------------------------------
22 USD 13.04.01 - - 136,103,626.24
- -----------------------------------------------------------------------------------------------------------------------
23 USD 13.10.01 - - 142,411,700.48
- -----------------------------------------------------------------------------------------------------------------------
24 USD 14.04.01 - - 149,013,415.68
- -----------------------------------------------------------------------------------------------------------------------
25 USD 14.10.01 - - 155,919,184.64
- -----------------------------------------------------------------------------------------------------------------------
26 USD 15.04.01 - - 163,147,750.40
- -----------------------------------------------------------------------------------------------------------------------
27 USD 15.10.01 - - 170,709,525.76
- -----------------------------------------------------------------------------------------------------------------------
28 USD 16.04.01 178,621,171.20 - - Put Date
- -----------------------------------------------------------------------------------------------------------------------
(4) Name of Bond : Yankee 4th
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 USD 03.06.01 - 2,119,200.00 70,640,000
- ----------------------------------------------------------------------------------------------------------------------
2 USD 03.12.01 - 2,119,200.00 70,640,000
- ----------------------------------------------------------------------------------------------------------------------
3 USD 04.06.01 - 2,119,200.00 70,640,000
- ----------------------------------------------------------------------------------------------------------------------
4 USD 04.12.01 - 2,119,200.00 70,640,000
- ----------------------------------------------------------------------------------------------------------------------
5 USD 05.06.01 - 2,119,200.00 70,640,000
- ----------------------------------------------------------------------------------------------------------------------
6 USD 05.12.01 - 2,119,200.00 70,640,000
- ----------------------------------------------------------------------------------------------------------------------
7 USD 06.06.01 - 2,119,200.00 70,640,000
- ----------------------------------------------------------------------------------------------------------------------
8 USD 06.12.01 70,640,000 2,119,200.00 - Put Date
- ----------------------------------------------------------------------------------------------------------------------
- 5 -
(5) Name of Bond : Yankee 5th
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 USD 03.02.01 - 10,500,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 USD 03.08.01 - 10,500,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 USD 04.02.01 - 10,500,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 USD 04.08.01 - 10,500,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
5 USD 05.02.01 - 10,500,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
6 USD 05.08.01 - 10,500,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
7 USD 06.02.01 - 10,500,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
8 USD 06.08.01 - 10,500,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
9 USD 07.02.01 300,000,000 10,500,000.00 - Put Date
- ----------------------------------------------------------------------------------------------------------------------
(6) Name of bond : Yankee 6th
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 USD 03.02.01 - 6,750,000.00 200,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 USD 03.08.01 - 6,750,000.00 200,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 USD 04.02.01 - 6,750,000.00 200,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 USD 04.08.01 200,000,000 6,750,000.00 - Put Date
- ----------------------------------------------------------------------------------------------------------------------
(7) Name of Bond : Global 1st
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 USD 03.06.01 - 43,031,250.00 1,350,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 USD 03.12.01 1,350,000,000 43,031,250.00 -
- ----------------------------------------------------------------------------------------------------------------------
- 6 -
(8) Name of Bond : Global 2nd
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 USD 03.03.15 - 12,375,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 USD 03.09.15 - 12,375,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 USD 04.03.15 - 12,375,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 USD 04.09.15 - 12,375,000.00 300,000,000
- ----------------------------------------------------------------------------------------------------------------------
5 USD 05.03.15 300,000,000 12,375,000.00 -
- ----------------------------------------------------------------------------------------------------------------------
(9) Name of Bond : Euro 3-1st
(Unit : JPY)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 JPY 03.06.27 - 35,200,000 2,560,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 JPY 03.12.27 - 35,200,000 2,560,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 JPY 04.06.27 2,560,000,000 35,200,000 -
- ----------------------------------------------------------------------------------------------------------------------
(10) Name of Bond : Euro 3-2nd
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 USD 03.06.27 - 236,088.13 21,000,000 Variable Interest
- ----------------------------------------------------------------------------------------------------------------------
2 USD 03.12.27 - 237,385.31 21,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 USD 04.06.27 21,000,000 237,385.31 -
- ----------------------------------------------------------------------------------------------------------------------
(11) Name of Bond : Euro 4nd
(Unit : JPY)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 JPY 03.07.01 146,000,000 5,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 JPY 04.07.01 5,000,000,000 146,000,000 -
- ----------------------------------------------------------------------------------------------------------------------
- 7 -
(12) Name of Bond : Euro 5th
(Unit : JPY)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 JPY 03.07.01 - 125,000,000 5,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 JPY 04.07.01 5,000,000,000 125,000,000 -
- ----------------------------------------------------------------------------------------------------------------------
(13) Name of Bond : Euro 6-1st
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 USD 03.03.26 - 1,955,250.00 55,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 USD 03.09.26 - 1,955,250.00 55,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 USD 04.03.26 - 1,955,250.00 55,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 USD 04.09.26 55,000,000 1,955,250.00 -
- ----------------------------------------------------------------------------------------------------------------------
(14) Name of Bond : Euro 6-2nd
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 USD 03.03.26 - 3,348,750.00 95,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 USD 03.09.26 - 3,348,750.00 95,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 USD 04.03.26 - 3,348,750.00 95,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 USD 04.09.26 - 3,348,750.00 95,000,000
- ----------------------------------------------------------------------------------------------------------------------
5 USD 05.03.26 - 3,348,750.00 95,000,000
- ----------------------------------------------------------------------------------------------------------------------
6 USD 05.09.26 - 3,348,750.00 95,000,000
- ----------------------------------------------------------------------------------------------------------------------
7 USD 06.03.26 - 3,348,750.00 95,000,000
- ----------------------------------------------------------------------------------------------------------------------
8 USD 06.09.26 - 3,348,750.00 95,000,000
- ----------------------------------------------------------------------------------------------------------------------
9 USD 07.03.26 - 3,348,750.00 95,000,000
- ----------------------------------------------------------------------------------------------------------------------
10 USD 07.09.26 95,000,000 3,348,750.00 -
- ----------------------------------------------------------------------------------------------------------------------
- 8 -
(15) Name of Bond : Euro 7-3rd
(Unit : GBP)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 GBP 03.04.28 - 2,079,695.00 24,467,000
- ----------------------------------------------------------------------------------------------------------------------
2 GBP 04.04.28 - 2,079,695.00 24,467,000
- ----------------------------------------------------------------------------------------------------------------------
3 GBP 05.04.28 - 2,079,695.00 24,467,000
- ----------------------------------------------------------------------------------------------------------------------
4 GBP 06.04.28 - 2,079,695.00 24,467,000
- ----------------------------------------------------------------------------------------------------------------------
5 GBP 07.04.28 24,467,000 2,079,695.00 -
- ----------------------------------------------------------------------------------------------------------------------
(16) Name of Bond : Euro 9th
(Unit : EUR)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 EUR 03.07.26 - 1,448,022.50 25,183,000 Variable Interest
- ----------------------------------------------------------------------------------------------------------------------
2 EUR 04.07.26 25,183,000 1,451,989.68 -
- ----------------------------------------------------------------------------------------------------------------------
(17) Name of Bond : Euro 10th
(Unit : JPY)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 JPY 03.01.27 - 315,000,000 30,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 JPY 03.07.27 - 315,000,000 30,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 JPY 04.01.27 - 315,000,000 30,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 JPY 04.07.27 - 315,000,000 30,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
5 JPY 05.01.27 - 315,000,000 30,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
6 JPY 05.07.27 30,000,000,000 315,000,000 -
- ----------------------------------------------------------------------------------------------------------------------
(18) Name of Bond : FRN3-1st
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 USD 03.05.05 - 1,804,871.67 96,500,000 Variable Interest
- ----------------------------------------------------------------------------------------------------------------------
- 9 -
- ----------------------------------------------------------------------------------------------------------------------
2 USD 03.11.05 - 1,834,786.67 96,500,000
- ----------------------------------------------------------------------------------------------------------------------
3 USD 04.05.05 - 1,814,843.33 96,500,000
- ----------------------------------------------------------------------------------------------------------------------
4 USD 04.11.05 - 1,834,786.67 96,500,000
- ----------------------------------------------------------------------------------------------------------------------
5 USD 05.05.05 - 1,804,871.67 96,500,000
- ----------------------------------------------------------------------------------------------------------------------
6 USD 05.11.05 96,500,000 1,834,786.67 -
- ----------------------------------------------------------------------------------------------------------------------
(19) Name of Bond : FRN3-2nd
(Unit : US$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 USD 03.04.28 - 688,503.47 50,000,000 Variable Interest
- ----------------------------------------------------------------------------------------------------------------------
2 USD 03.10.28 - 692,286.46 50,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 USD 04.04.28 - 692,286.46 50,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 USD 04.10.28 50,000,000 692,286.46 -
- ----------------------------------------------------------------------------------------------------------------------
(20) Name of Bond : Samurai 4th
(Unit : JPY)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 JPY 03.04.11 - 560,250,000 27,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 JPY 03.10.11 - 560,250,000 27,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 JPY 04.04.11 - 560,250,000 27,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 JPY 04.10.11 - 560,250,000 27,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
5 JPY 05.04.11 27,000,000,000 560,250,000 -
- ----------------------------------------------------------------------------------------------------------------------
(21) Name of Bond : Samurai 5th
(Unit : JPY)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 JPY 03.03.07 246,500,000 14,500,000,000
- ----------------------------------------------------------------------------------------------------------------------
- 10 -
- ----------------------------------------------------------------------------------------------------------------------
2 JPY 03.09.07 246,500,000 14,500,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 JPY 04.03.07 246,500,000 14,500,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 JPY 04.09.07 246,500,000 14,500,000,000
- ----------------------------------------------------------------------------------------------------------------------
5 JPY 05.03.07 246,500,000 14,500,000,000
- ----------------------------------------------------------------------------------------------------------------------
6 JPY 05.09.07 14,500,000,000 246,500,000 -
- ----------------------------------------------------------------------------------------------------------------------
(22) Name of Bond : Samurai Dual Currency 1-1st
(Principal :?, Accrued Interest : AU$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 JPY 03.03.27 - 5,053,000.00 10,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 JPY 04.03.27 - 5,053,000.00 10,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 JPY 05.03.27 - 5,053,000.00 10,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 JPY 06.01.10 10,000,000,000 4,000,800.00 -
- ----------------------------------------------------------------------------------------------------------------------
(23) Name of Bond : Samurai Dual Currency 1-2nd
(Principal : JPY, Accrued Interest : AU$)
- ----------------------------------------------------------------------------------------------------------------------
No Currency Due Date Principal Interest Outstanding Remarks
- ----------------------------------------------------------------------------------------------------------------------
1 JPY 03.03.27 - 10,803,660.00 21,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
2 JPY 04.03.27 - 10,803,660.00 21,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
3 JPY 05.03.27 10,803,660.00 21,000,000,000
- ----------------------------------------------------------------------------------------------------------------------
4 JPY 06.01.30 21,000,000,000 9,145,920.00 -
- ----------------------------------------------------------------------------------------------------------------------
(Attachment 3)
Statement of Expenses Relating to Payment Guarantee
1. Expenses to be covered
A. Any and all legal costs and the related taxes thereon incurred by the
Applicant resulting from the confirmation, preparation, submission and
registration (including follow-up registration with the SEC) by the
Bank, required in connection with the documentation and performance of
other guarantee businesses in the course of consent solicitation
from overseas creditors to waive joint and several liability.
B. In the case of traveling expenses to attend the meeting or ceremony,
preparation expenses and other expenses incurred by the Bank at the
request of the Applicant, the actual expenses.
2. Relevant Documents in respect of which the Applicant shall bear Expenses
A. Prospectus Supplement;
B. Securities Guarantee;
C. Deed Poll Guarantee;
D. Letter of Guarantee;
E. Solicitation Indemnification Agreement; and
F. Guarantee Agreement (Korean and English versions), etc.
3. Maximum Limit of Expenses
The maximum limit of expenses set forth above shall be 260,000,000
Korean Won; provided, that if the expenses are in excess of such
maximum limit, the Bank and the Applicant may enter into a separate
agreement in respect of it.
4. Procedure Payment
The Bank shall request for the Applicant to pay expenses incurred by
the Bank in the form of an official document attached to an invoice
(to which the details of expenses and relevant documentary evidence
are attached), and the Applicant shall pay to the Bank the requested
amount within two (2) weeks after receipt of the invoice.
- 12 -
-------------------------------------------
FORM OF SECURITIES GUARANTEE
THE KOREA DEVELOPMENT BANK
-------------------------------------------
__________, 2003
TABLE OF CONTENTS
Page
----
ARTICLE I DEFINITIONS 3
Section 1.1 Definitions 3
ARTICLE II GUARANTEE 5
Section 2.1 Guarantee 5
Section 2.2 Subrogation 7
ARTICLE III RANKING 7
Section 3.1 Ranking 7
ARTICLE IV ADDITIONAL AMOUNTS 7
Section 4.1 Additional Amounts 7
ARTICLE V NEGATIVE PLEDGE 9
Section 5.1 Negative Pledge 9
ARTICLE VI MISCELLANEOUS 10
Section 6.1 Successors and Assigns 10
Section 6.2 Amendments; Assignment 10
Section 6.3 Notices 10
Section 6.4 Benefit 11
Section 6.5 Consent to Service; Jurisdiction; Immunity Waiver 12
Section 6.6 Governing Law 13
Section 6.7 Severability 13
Section 6.8 Entire Agreement 13
Appendix A - Concerning The Securityholders
2
SECURITIES GUARANTEE
This SECURITIES GUARANTEE (the "Securities Guarantee")1, dated as of
__________, 2003, is executed, issued and delivered by The Korea Development
Bank, a statutory juridical entity established under The Korea Development Bank
Act of 1954, as amended, in the Republic of Korea, and wholly owned by the
government of the Republic of Korea (the "Guarantor"), for the benefit of the
Securityholders and the Trustee (as defined herein) from time to time of the
Securities (as defined herein).
WHEREAS, pursuant to a Guarantee Agreement (the "Guarantee Agreement"),
dated as of November 13, 2002, between the Guarantor and Korea Electric Power
Corporation, a statutory juridical corporation established under the Korea
Electric Power Corporation Act of 1980, as amended, in the Republic of Korea,
the Guarantor has agreed to offer the Securities Guarantee.
NOW, THEREFORE, in consideration of the mutual agreements and covenants
contained in the Guarantee Agreement and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Guarantor
executes, issues and delivers this Securities Guarantee for the benefit of the
Securityholders.
ARTICLE I
DEFINITIONS
Section 1.1 Definitions
In this Securities Guarantee, unless the context otherwise requires:
(a) capitalized terms used in this Securities Guarantee but not defined in
the preamble above shall have the respective meanings assigned to them in this
Section 1.1;
(b) all references to "the Securities Guarantee" or "this Securities
Guarantee" are to this Securities Guarantee as modified, supplemented or amended
from time to time;
- -----------------
1 Each Securities Guarantee will relate to only one issue of Global/Yankee
bonds. Each issue will have its own Securities Guarantee.
3
(c) all references in this Securities Guarantee to Articles and Sections
are to Articles and Sections of this Securities Guarantee unless otherwise
specified; and
(d) a reference to the singular includes the plural and vice versa.
"Base Indenture" shall mean the [applicable base indenture].
"Event of Default" shall have the meaning set forth in Section [insert
applicable section] of the Base Indenture, as amended or supplemented.
"Indenture" shall mean the Base Indenture, as amended and supplemented
from time to time, including by the Supplemental Indenture.
"Issuer" shall mean Korea Electric Power Corporation, a statutory
juridical entity established under the Korea Electric Power Corporation Act of
1980, as amended, in the Republic, and, subject to the provisions of the
Indenture, its successors and assigns.
"KDB Put Event" shall have the meaning assigned to such term in the
Supplemental Indenture.
"Person" shall mean any individual, corporation, partnership, joint
venture, association, joint stock company, trust, estate, unincorporated
organization or government or any agency or political subdivision thereof.
"Security" shall mean any of the [name of applicable Yankee Debt
Security] authenticated and delivered under the Indenture.
"Securityholder" shall mean the registered holder of any Security.
"Supplemental Indenture" shall mean the supplemental indenture, dated
as of ______, 2002, between the Issuer and the Trustee, relating to the
Security.
["Redemption Date" shall mean [insert applicable redemption date].]
"Trustee" shall mean Deutsche Bank Trust Company Americas and, subject
to the provisions of the Indenture, any successor trustee with respect to the
Securities.
4
ARTICLE II
GUARANTEE
Section 2.1 Guarantee
(a) The Guarantor hereby fully, irrevocably and unconditionally guarantees,
on an unsecured and unsubordinated basis, (i) the due and punctual payment of
the principal (including without limitation any related redemption or repurchase
prices or amounts) of, and interest on (including without limitation any
interest on overdue principal of and interest on), and all other amounts payable
by the Issuer to Securityholders under, each Security provided for pursuant to
the Indenture and the terms of such Security when and as the same shall become
due and payable, whether at its stated maturity date, upon acceleration, by call
for redemption, upon the occurrence of a KDB Put Event, or otherwise, in
accordance with the terms of such Security and of the Indenture; and (ii)
punctual payment of the fees, expenses and other amounts owed by the Issuer to
the Trustee pursuant to the terms of the Indenture. The Guarantor hereby
expressly waives any right to require a Securityholder or the Trustee to pursue
or exhaust its legal or equitable remedies against the Issuer prior to
exercising its rights against the Guarantor under this Securities Guarantee. The
Securities Guarantee will not be discharged with respect to any Security except
by payment in full of the principal thereof, premium, if any, and interest
thereon and all other amounts payable thereunder [(except as otherwise limited
by Section 2.1(c) below)]. In case of the failure of the Issuer punctually to
pay any such principal, interest or other amounts, the Guarantor hereby agrees
to cause any such payment to be made punctually when and as the same shall
become due and payable, whether at the stated maturity, by acceleration, call
for redemption, upon the occurrence of a KDB Put Event, or otherwise, and as if
such payment were made by the Issuer.
(b) The Guarantor hereby agrees that its obligations hereunder shall be as
if it were principal debtor and not merely surety, and shall be absolute and
unconditional, irrespective of, and unaffected by, (i) any invalidity,
irregularity or unenforceability of any Security, the Indenture or the Guarantee
Agreement, (ii) any failure of any Securityholder or the Trustee to assert any
claim or demand or to enforce or exercise any right to remedy against the Issuer
or any other Person (including but not limited to any other guarantor of the
guaranteed obligations hereunder) under the Indenture, the Securities, the
Guarantee Agreement or otherwise, (iii) any waiver (whether single or partial if
other rights or remedies exist at that time or in the future), rescission,
amendment or modification of any of the terms or provisions of the Indenture,
the Securities or the Guarantee Agreement or indulgence granted to the Issuer
with respect to such waiver, rescission, amendment or modification by the
Securityholders or the Trustee (except to the extent limited by Section 2(e)
below), (iv) any claim of waiver, release surrender, alteration or
5
compromise or any other circumstance which may otherwise constitute a legal or
equitable discharge of a surety or guarantor and shall not be subject to any
defense of set-off of similar right (with respect to the Issuer or any other
Person), counterclaim, recoupment or termination, or (v) any change in the
ownership of the Guarantor. The Guarantor further agrees that it shall remain
bound hereunder notwithstanding any extension or renewal of any obligation
guaranteed hereunder, in whole or part, provided, however, that if any
obligation guaranteed hereunder is extended or renewed without the prior written
consent of the Guarantor, then this Securities Guarantee shall remain in full
force and effect only as to the amounts and on the same terms as if no such
extension or renewal had occurred. The Guarantor hereby waives diligence, notice
of acceptance, presentment, demand of payment, filing of claims with a court in
the event of merger, consolidation, sale, transfer, lease or conveyance of the
property or bankruptcy of the Issuer, any right to require a proceeding first
against the Issuer (including, for the avoidance of doubt, any right which the
Guarantor may have to require the seizure and sale of the assets of the Issuer
to satisfy the outstanding principal of, interest on or any other amounts
payable under each Security prior to recourse against the Guarantor or its
assets), protest or notice with respect to any Security or the indebtedness
evidenced thereby and all demands whatsoever. The Guarantor waives notice of any
default under the Indenture or the Securities. If at any time any payment on
such Security is rescinded or must be otherwise restored or returned, by order
of a court or otherwise, upon the insolvency, bankruptcy or reorganization of
the Issuer, the Guarantor's obligations hereunder with respect to such payment
shall be reinstated as of the date that such payment is rescinded, restored or
returned as though such payment had become due but had not been made as of that
date. For the avoidance of doubt, the Guarantor further agrees that its
guarantee herein constitutes a guarantee of payment, performance and compliance
when due (and not a guarantee of collection) and waives any right to require
that any resort be had by any Securityholder or the Trustee to any security held
for payment of the obligations guaranteed hereunder.
[(c) Notwithstanding any of the foregoing, with respect to the
Securityholders, the Securities Guarantee shall cover only such amounts
(including without limitation amounts due and payable as a result of
acceleration, call for redemption and upon the occurrence of a KDB Put Event)
which become due and payable on or before the Redemption Date and any interest
that accrues in respect of such amounts that become overdue and unpaid (to the
extent enforceable under applicable law), whether such interest accrues before,
on or after the Redemption Date.]2
- ----------
2 Applicable to certain issues of bonds.
6
(d) The Guarantor hereby agrees and acknowledges that the Trustee has the
right to enforce this Securities Guarantee on behalf of the Securityholders and,
in connection therewith, to pursue any available remedy to collect any and all
the amounts due under this Securities Guarantee.
(e) Notwithstanding any of the foregoing, if the terms of the Securities
are amended or modified, without the prior written consent of the Guarantor, to
(i) increase the principal amount or interest rate of any Security, (ii) change
the currency of payment with respect to any Security, (iii) change the stated
maturity thereof, (iv) provide for new Events of Default or (v) otherwise change
the terms of a Security or the Indenture, as to increase the obligations or
liability of the Guarantor hereunder, this Securities Guarantee shall remain in
full force and effect only as to the amounts and on the same terms as if no such
amendment or modification had occurred.
Section 2.2 Subrogation
The Guarantor shall be subrogated to all rights of the Securityholders
against the Issuer in respect of any amounts paid to the Securityholders by the
Guarantor pursuant to the provisions of the Securities Guarantee, provided,
however, that the Guarantor shall not be entitled to enforce or to receive any
payments arising out of or based upon its rights of subrogation if, at the time
of any such payments, any amounts are due and unpaid by the Guarantor under the
Securities Guarantee.
ARTICLE III
RANKING
Section 3.1 Ranking
Subject to the provisions of Article V hereof, this Securities
Guarantee will constitute a full, irrevocable, unconditional, unsecured and
unsubordinated general obligation of the Guarantor and will rank pari passu with
all other outstanding and future unsecured and unsubordinated obligations of the
Guarantor (subject to certain statutory exceptions under the laws of the
Republic of Korea).
ARTICLE IV
ADDITIONAL AMOUNTS
Section 4.1 Additional Amounts
All payments of principal of, or premium (if any), interest or
other amounts on, the Securities by the Guarantor will be made without deduction
or
7
withholding for or on account of any present or future taxes, duties,
assessments or governmental charges of whatever nature imposed or levied by or
on behalf of the Republic of Korea or by or within any political subdivision
thereof or any authority therein having power to tax ("Korean Tax"), unless
deduction or withholding of such Korean Tax is required by law. In that event,
the Guarantor will pay such additional amounts as will result in the payment to
Securityholders of the amounts which would otherwise have been receivable in the
absence of the withholding or deduction in respect of principal, premium (if
any), interest and any other payments, except that no such additional amount
shall be payable in respect of any Security:
(a) to or on behalf of a holder who is subject to such Korean Tax in
respect of such Security by reason of his being or having been connected with
the Republic of Korea (or any political subdivision thereof) (such as a holder
being a Korean corporation or a resident of Korea) otherwise than merely by
holding such Security or receiving principal, premium (if any), interest or any
other payment in respect thereof; or
(b) to or on behalf of a holder who would not be liable for or subject to
such deduction or withholding by making a declaration of non-residence or other
similar claim for exemption to the relevant tax authority if, after having been
requested to make such a declaration or claim, such holder or beneficial owner
fails to do so, or
(c) to or on behalf of a holder who presents a Security (where presentation
is required) for payment more than 30 days after the relevant date except to the
extent that the holder thereof would have been entitled to such additional
payment on presenting the same for payment on the last day of such 30-day
period; for this purpose the "relevant date" in relation to any payments of
principal of, or premium (if any), interest or other amount on, any Security
means:
(i) the due date for payment thereof; or
(ii) if the full amount of the monies payable on such date has not been
received in New York City by the Trustee on or prior to such due date, the date
on which, the full amount of such monies having been so received, notice to that
effect is duly given to holders of the Securities in accordance with the
Indenture; or
(d) any combination of (a), (b) or (c) above.
The obligation to pay additional amounts with respect to taxes, duties,
assessments and governmental charges shall not apply to (i) any estate, stamp
duty, inheritance, gift, sales, transfer, personal property or any similar tax,
assessment or
8
other governmental charge or (ii) any tax, assessment or other governmental
charge which is payable otherwise than by deduction or withholding from payments
of principal of, premium (if any), interest or other amount on, the Securities.
(e) All references in this Agreement to payment obligations under the
Securities Guarantee shall be deemed to include all amounts payable by the
Guarantor pursuant to this Article IV.
ARTICLE V
NEGATIVE PLEDGE
Section 5.1 Negative Pledge
So long as this Securities Guarantee remains in effect, the Guarantor will
not create or permit to subsist any mortgage, charge, pledge or other security
interest upon the whole or any part of its assets, present or future, to secure
any indebtedness, or to secure any guarantee of indebtedness, unless the
Securities Guarantee shall be secured equally and ratably therewith, except that
the Guarantor may create or permit to arise or subsist:
(a) any encumbrance over promissory notes or other commercial paper
discounted or otherwise provided as security to or issued by the Guarantor where
such encumbrance is created in favor of The Bank of Korea in the normal
operation of its discount facilities or its facilities for the funding of loans
by the Guarantor to customers of the Guarantor; or
(b) any encumbrance over any immovable property owned by the Guarantor as
security for the repayment by the Guarantor to a tenant of that property of any
key money paid by such tenant to the Guarantor upon taking a tenancy or lease of
that property; or
(c) any statutory lien arising in the ordinary course of the Guarantor's
business and not in connection with the borrowing or raising of money; or
(d) any encumbrance arising or preference given under Korean law,
applicable generally to corporations established under Korean law, by virtue of
a failure by the Guarantor to meet an obligation, provided that such encumbrance
shall not be permitted to subsist for more than 30 days; or
(e) any encumbrance over any asset purchased by the Guarantor (or documents
of title thereto) or arising in connection with improvements to any
9
asset of the Guarantor as security for the unpaid balance of the purchase price
thereof or costs of improvement thereto.
ARTICLE VI
MISCELLANEOUS
Section 6.1 Successors and Assigns
All guarantees and agreements contained in this Securities Guarantee shall
bind the successors, assigns, receivers, trustees and representatives of the
Guarantor and shall inure to the benefit of the Securityholders then
outstanding.
Section 6.2 Amendments; Assignment
(a) This Securities Guarantee can only be amended or modified with the
prior written consent of the Guarantor, each Securityholder that would be
affected by such amendment or modification and the Trustee acting on its own
behalf, except that with respect to any changes which do not adversely affect
the rights of Securityholders or the Trustee, this Securities Guarantee can be
amended or modified with the prior written consent of the Guarantor, the Issuer
and the Trustee.
(b) The Guarantor shall not assign its rights or delegate its obligations
under this Securities Guarantee without the prior written consent of the Issuer,
the holders of all Securities and the Trustee.
(c) The provisions set forth in Appendix A hereto shall apply to any
consent to be obtained pursuant to Section 6.2(a) or Section 6.2(b) hereof.
Section 6.3 Notices
All notices provided for in this Securities Guarantee shall be in writing
in the English language or a certified translation, duly signed by the party
giving such notice, and shall be delivered, telecopied (with a copy to follow
promptly via registered or certified mail) or mailed by registered or certified
mail, as follows:
(a) if given to the Issuer, at the Issuer's mailing address set forth below
(or such other address as the Issuer may give notice of to the Guarantor and the
Securityholders):
Korea Electric Power Corporation
167, Samsung-dong, Kangnam-ku
Seoul 135-791, Korea
10
Attention: The Debt Restructuring Team of The
Electricity Industry Restructuring Office
Fax: +82 2 556-7254
(b) if given to the Guarantor, at the Guarantor's mailing address set forth
below (or such other address as the Guarantor may give notice of to the Issuer,
the Trustee and the Securityholders):
The Korea Development Bank
16-3, Yeoyido-dong, Youngdeungpo-ku
Seoul, Korea
Attention: Team Head of the Corporate Finance Team II of
The Corporate Finance Department II
Fax: +82 2 787-5291
(c) if given to the Trustee, at the Trustee's mailing address set forth
below (or such other address as the Trustee may give notice of to the Issuer,
the Guarantor and the Securityholders):
Deutsche Bank Trust Company Americas
100 Plaza One - MS#JCY03-0603
Jersey City, NJ 07311, USA
Fax : +1 201 593-6443
(d) if given to any Securityholder, at the address set forth on the books
and records of the registrar of the Securities.
All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid, in each case during normal business hours, except that if a
notice or other document is refused delivery or cannot be delivered because of a
changed address of which no notice was given, such notice or other document
shall be deemed to have been delivered on the date of such refusal or inability
to deliver.
Section 6.4 Benefit
This Securities Guarantee is solely for the benefit of the Securityholders
and the Trustee and is not separately transferable from the Securities.
11
Section 6.5 Consent to Service; Jurisdiction; Immunity Waiver
The Guarantor has appointed each of the General Manager of the New York
Branch of the Guarantor, Mr. Woo-Yang Park, and the Senior Deputy General
Manager of the New York Branch of the Guarantor, Mr. Man-Ho Yoon, acting through
their offices at 320 Park Avenue, 32nd Floor, New York 10022, in the Borough of
Manhattan, City of New York, and each of their successors in the future, as its
authorized agent upon whom process may be served in any action, suit or
proceeding based on the Securities Guarantee ("Proceedings") which may be
instituted in any state or federal court in The City of New York by or on behalf
of the holder of any Security, and the Guarantor hereby accepts the jurisdiction
of any such court in respect of any such proceedings. Such appointment will be
irrevocable, except that if, for any reason, Mr. Woo-Yang Park or Mr. Man-Ho
Yoon, or their successors from time to time, cease to be able to act as such
authorized agent or to have an address in the Borough of Manhattan, The City of
New York, the Guarantor will appoint one or more other persons in the Borough of
Manhattan, The City of New York, selected in its discretion, as such authorized
agent. The Guarantor has obtained the acceptance of each of its General Manager
of its New York Branch and the Senior Deputy General Manager of its New York
Branch to his appointment as such authorized agent. The Guarantor shall take any
and all action, including the filing of any and all documents and instruments,
that may be necessary to continue such appointments in full force and effect as
aforesaid. Service of process upon an authorized agent at the address indicated
above, as such address may be changed within the Borough of Manhattan, The City
of New York by notice given by an authorized agent to each party hereto, shall
be deemed, in every respect, effective service of process upon the Guarantor.
Neither the appointment of authorized agents for service of process nor the
acceptance of jurisdiction described in this paragraph shall be interpreted to
include actions brought under the United States federal securities laws. The
Guarantor may be sued in courts, located in the Republic of Korea, having
jurisdiction over the Guarantor.
In respect of any Proceedings, the Guarantor hereby irrevocably consents to
the giving of any relief and the issue of any process in connection with such
Proceedings, including, without limitation, the making, enforcement or execution
(against any assets whatsoever, irrespective of their uses or intended uses), of
any order or judgment made or given in any such Proceedings, and, to the extent
that the Guarantor may in any jurisdiction claim for itself or its assets, or
have attributed to it or its assets, any right of immunity on the grounds of
sovereignty from any legal action, suit or proceedings, the Guarantor hereby
irrevocably agrees not to claim and waives such immunity to the full extent
permitted by the laws of such jurisdiction (including, without limitation, the
Republic of Korea).
12
Section 6.6 Governing Law
THIS SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
Section 6.7 Severability
Any term or provision of this Securities Guarantee that is held by a court
of competent jurisdiction or other authority to be invalid, void or
unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or
in any other jurisdiction. If the final judgment of a competent authority
declares that any term or provision hereof is invalid, void or unenforceable,
the Guarantor agrees that the competent authority making such determination
shall have the power to reduce the scope, duration, area or applicability of the
term or provision, to delete specific words or phrases, or to replace any
invalid, void or unenforceable term or provision with a term or provision that
is valid and enforceable and that comes closest to expressing the intention of
the invalid or unenforceable term or provision.
Section 6.8 Entire Agreement
This Securities Guarantee constitutes the entire agreement of the Guarantor
with respect to the subject matter hereof and supersedes all prior agreements
and undertakings, both written and oral, between the Guarantor and any other
person with respect to the subject matter hereof, including, without limitation,
the Guarantee Agreement.
13
THIS SECURITIES GUARANTEE is executed as of the day and year first above
written.
THE KOREA DEVELOPMENT BANK,
as Guarantor
By:____________________________
Name:
Title:
14
APPENDIX A
CONCERNING THE SECURITYHOLDERS
Evidence of Action Taken by Securityholders. Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Securities Guarantee to be given or taken by Securityholders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Securityholders in person or by agent duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the
Guarantor. Proof of execution of any instrument or of a writing appointing any
such agent shall be sufficient for any purpose of this Securities Guarantee and
conclusive in favor of the Guarantor, if made in the manner provided in this
Appendix A.
Proof of Execution of Instruments and of Holding of Securities; Record
Date. The execution of any instrument by a Securityholder or its agent or proxy
may be proved in accordance with such reasonable rules and regulations as may be
prescribed by the Guarantor or in such manner as shall be satisfactory to the
Guarantor. The holding of Securities shall be proved by the Security register or
by a certificate of the registrar thereof. The Guarantor may set a record date
for purposes of determining the identity of holders of Securities entitled to
vote or consent to any action referred to in the first paragraph of this
Appendix A, which record date may be set at any time or from time to time by
notice to the Trustee and the Securityholders, for any date or dates (in the
case of any adjournment or resolicitation) not more than 60 days nor less than
ten days prior to the proposed date of such vote or consent, and thereafter,
notwithstanding any other provisions hereof, only holders of Securities of
record on such record date shall be entitled to so vote or give such consent or
to withdraw such vote or consent.
Right of Revocation of Action Taken. At any time prior to (but not after)
the evidencing to the Guarantor, as provided in the first paragraph of this
Appendix A, of the taking of any action by the holders of the percentage in
aggregate principal amount of the Securities specified in this Securities
Guarantee in connection with such action, any holder which has consented to such
action may, upon written notice to the Guarantor and upon proof of holding as
provided in this Appendix A and satisfactory proof of having so consented,
revoke such action so far as concerns such Security. Except as aforesaid any
such action taken by the holder of any Security shall be conclusive and binding
upon such holder and upon all future holders and owners of such Security and of
any Securities issued in exchange or substitution therefor, irrespective of
whether or not any notation in regard thereto is made upon any such Security.
Any action taken by the holders of the percentage in
A-1
aggregate principal amount of the Securities specified in Section 6.2 of this
Securities Guarantee in connection with such action shall be conclusively
binding upon the Guarantor and the holders of all the Securities.
A-2
FORM OF DEED POLL GUARANTEE
THIS GUARANTEE is made by way of DEED POLL on o 2003 by THE KOREA DEVELOPMENT
BANK (the "Guarantor"), a statutory juridical entity established under The Korea
Development Bank Act of 1954, as amended, in the Republic of Korea, and wholly
owned by the government of the Republic of Korea, in favour of the holders of
the Notes from time to time (the "Noteholders").
WHEREAS:
(A) Pursuant to a fiscal agency agreement dated [insert applicable date],
as amended, supplemented or restated as at the date hereof, between
Korea Electric Power Corporation, a statutory juridical corporation
established under The Korea Electric Power Corporation Act of 1980, as
amended, in the Republic of Korea (the "Issuer" or "KEPCO") and [name
of Fiscal Agent ] (the "Fiscal Agent") and the other agent named
therein (the "Fiscal Agency Agreement"), the Issuer has issued [name of
applicable Eurobond security] (the "Notes"). A reference to a numbered
condition in this Guarantee shall be a reference to the conditions of
the Notes (the "Conditions").
(B) At a meeting of the Noteholders, the Noteholders passed an
Extraordinary Resolution, inter alia, sanctioning and approving certain
modifications to the terms and conditions of the Notes (the "Proposed
Amendments") and a proposal to eliminate the joint and several
liability with respect to the Notes arising under the Korean Commercial
Code of KEPCO's generation company subsidiaries (the "Proposal"), as
set out in the Notice of Meeting dated [insert applicable date]. In
connection with such Proposed Amendments and the Proposal, the
Guarantor has agreed, subject to the satisfaction of certain conditions
precedent, for the benefit of all the Noteholders, on the terms set
forth herein, to fully, unconditionally and irrevocably guarantee, on
an unsecured and unsubordinated basis, KEPCO's payment obligations
under the Notes.
(C) The aforementioned conditions precedent have been satisfied in respect
of the Notes;
(D) The Notes are represented by a permanent global note (the "Global
Note");
(E) The Global Note is deposited with a common depositary for Clearstream
Banking, societe anonyme and Euroclear Bank S.A./N.V. as operator of
the Euroclear System (each a "Clearing System"). The Notes represented
by the Global Note are credited to a securities account or securities
accounts with the Clearing Systems. Any Accountholder (as defined in
the Fiscal Agency Agreement) with the relevant Clearing System which
has any of the Notes credited to its securities account from time to
time will, subject to and in accordance with the terms and conditions
and operating procedures or management regulations of the relevant
Clearing System, be entitled to transfer such Notes and (subject to and
upon payment being made by the Issuer to the bearer in accordance with
the terms of the Global Note) will be entitled to receive payments from
the relevant Clearing System calculated by reference to the Notes
credited to its securities account; and
(F) Capitalised terms not defined herein shall bear the meanings ascribed
to them in the Fiscal Agency Agreement.
1
NOW THIS GUARANTEE WITNESSES AS FOLLOWS:
1. The Guarantor as primary obligor fully, unconditionally and irrevocably:
(a) guarantees on an unsecured (subject to the provisions of clause 3
below) and unsubordinated basis to the Noteholders by way of
continuing guarantee, the due and punctual payment of the principal
of, premium, if any, and interest thereon and all other amounts
payable by the Issuer on or in respect of the Notes (including any
additional amounts which may become payable under Condition [insert
applicable condition number] (Taxation) of the Notes) and all
amounts under the Fiscal Agency Agreement as and when the same shall
become due and payable in accordance with the terms of the Fiscal
Agency Agreement and the Notes;
(b) agrees that, if and each time that the Issuer shall fail to make any
payments as and when the same shall become due and payable, the
Guarantor will on demand (without requiring the relevant Noteholder
first to take steps against the Issuer or any other person) pay to
the Noteholder such amounts (as to which the certificate of the
relevant Noteholder shall in the absence of manifest error be final
and conclusive) in the currency in which the amounts are payable by
the Issuer (as if the same were paid by the Issuer).
2. All payments of principal and interest in respect of the Notes that are
paid or otherwise satisfied by the Guarantor pursuant to this Guarantee
will be made without deduction or withholding for or on account of any
present or future taxes, duties, assessments or governmental charges of
whatever nature imposed or levied by or on behalf of the Republic of Korea
or any political subdivision or any authority thereof or therein having
power to tax, unless the deduction or withholding of such taxes, duties,
assessments or governmental charges is required by law. If the Guarantor
is required by law to make any such deduction or withholding, the
Guarantor will pay such additional amounts by way of principal or interest
as will result in the receipt by the Noteholders or Couponholders of the
amounts which would otherwise have been receivable in respect of principal
and interest had no such deduction or withholding been made, except that
no such additional amounts shall be payable in respect of any Note or
Coupon presented for payment:
(a) by or on behalf of a holder who is subject to such taxes, duties,
assessments or governmental charges in respect of such Note or
Coupon by reason of his being connected with the Republic of Korea
otherwise than merely by holding such Note or Coupon or receiving
principal or interest in respect thereof;
(b) by or on behalf of a holder who would not be liable for or subject
to such deduction or withholding by making a declaration of
non-residence or other similar claim for exemption to the relevant
tax authority if, after having been requested to make such a
declaration or claim, such holder fails to do so; or
(c) more than thirty days after the Relevant Date (as defined below)
except to the extent that the holder thereof would have been
entitled to such additional payment on presenting the same for
payment on the last day of such thirty-day period.
For the purposes of this clause 2:
2
(x) the "Relevant Date" in relation to any Note or Coupon means the date
on which such payment first becomes due, except that if the amount
of the moneys payable has not been received in [insert applicable
time zone] by the Fiscal Agent on or prior to such due date it means
that date on which, the full amount of such moneys having been so
received, notice to that effect shall have been duly given to the
Noteholders or Couponholders in accordance with Condition [insert
applicable condition number]of the Notes (Notices); and
(y) references to principal or interest in respect of the Notes shall be
deemed also to refer to any additional amounts which may be payable
under this clause 2.
3. For so long as this Guarantee remains in effect, the Guarantor will not
create or permit to subsist any mortgage, charge, pledge or other security
interest upon the whole or any part of its assets, present or future, to
secure any indebtedness, or to secure any guarantee of indebtedness,
unless the Guarantee shall be secured equally and ratably therewith,
except that the Guarantor may create or permit to arise or subsist:
(a) any encumbrance over promissory notes or other commercial paper
discounted or otherwise provided as security to or issued by the
Guarantor where such encumbrance is created in favour of The Bank of
Korea in the normal operation of its discount facilities or its
facilities for the funding of loans by the Guarantor to customers of
the Guarantor; or
(b) any encumbrance over any immovable property owned by the Guarantor
as security for the repayment by the Guarantor to a tenant of that
property of any key money paid by such tenant to the Guarantor upon
taking a tenancy or lease of that property; or
(c) any statutory lien arising in the ordinary course of the Guarantor's
business and not in connection with the borrowing or raising of
money; or
(d) any encumbrance arising or preference given under Korean law,
applicable generally to corporations established under Korean law,
by virtue of a failure by the Guarantor to meet an obligation,
provided that such encumbrance shall not be permitted to subsist for
more than 30 days; or
(e) any encumbrance over any asset purchased by the Guarantor (or
documents of title thereto) or arising in connection with
improvements to any asset of the Guarantor as security for the
unpaid balance of the purchase price thereof or costs of improvement
thereto.
4. The obligations of the Guarantor under this Guarantee shall not be
affected by any matter or thing which but for this provision might operate
to affect the Guarantor's obligations, including, without limitation:
(a) any time or indulgence granted to or composition with the Issuer or
any other person;
(b) the taking, variation, renewal or release of remedies or securities
against the Issuer or any other person;
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(c) any unenforceability, invalidity or irregularity of the Notes, the
Fiscal Agency Agreement or the Guarantee Agreement entered into
between the Guarantor and KEPCO dated November 13, 2002 (the
"Guarantee Agreement"); or
(d) any term or other provision of the Guarantee Agreement.
5. Where any discharge (whether in respect of the obligations of the Issuer
or any security for the obligations of the Issuer or otherwise) is made in
whole or in part or any arrangement is made on the faith of any payment,
security or other disposition which is avoided or must be repaid on
bankruptcy, liquidation or otherwise without limitation, the liability of
the Guarantor under this Guarantee shall continue as if there had been no
discharge or arrangement except by payment in full of the principal,
premium, if any, and interest thereon and all other amounts payable on or
in respect of the Notes and the Fiscal Agency Agreement. The Guarantor
covenants that this Guarantee will not be discharged with respect to any
Note except by payment in full of the principal thereof, interest and any
other amounts due thereon. The Guarantor waives notice of any default
under the Fiscal Agency Agreement or the Notes. Notwithstanding anything
in this Guarantee, the Fiscal Agency Agreement or the Guarantee Agreement,
the Guarantor hereby agrees that its obligations hereunder shall not be
affected by any defence, right of set-off or similar right (with respect
to KEPCO or any other person), counterclaim, recoupment or termination.
Each Noteholder, acting bona fide and in good faith, shall be entitled to
concede or compromise any claim that any payment, security or other
disposition is liable to avoidance or repayment.
6. The Guarantor represents, warrants and covenants with each Noteholder
that:
(a) it is a statutory banking institution duly organised under the laws
of the Republic of Korea and has and will have the necessary power
to enable it to execute, deliver and perform its obligations under
this Guarantee;
(b) subject to the provisions of clause 3 hereof, this Guarantee
constitutes a full unconditional and irrevocable, on an unsecured
and unsubordinated basis, obligation of the Guarantor and will rank
pari passu with all other outstanding and future unsecured and
unsubordinated obligations of the Guarantor (subject to certain
statutory exceptions under the laws of the Republic of Korea);
(c) this Guarantee constitutes its legal, valid and binding obligations,
enforceable against it;
(d) all necessary consents and authorisations (if any) to enable it to
enter into this Guarantee have been obtained and are and will remain
in full force and effect;
(e) the execution, delivery and performance of this Guarantee will not
conflict with (i) any agreement binding on it or any of its assets;
(ii) its constitutive documents, or (iii) any applicable law; and
(f) that, for the avoidance of doubt, this Guarantee constitutes a
guarantee of payment (and not a guarantee of collection) and waives
any right to require that any resort be had by any holder or the
Fiscal Agent or the Paying Agent under the Fiscal Agency Agreement
to any security held for payment of the obligations guaranteed
thereunder.
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7. The Guarantor shall be subrogated to all rights of the Noteholders against
the Issuer in respect of any amounts paid to the Noteholders by the
Guarantor pursuant to this Guarantee, provided, however, that the
Guarantor shall not be entitled to enforce or to receive any payments
arising out of or based upon its rights of subrogation if, at the time of
any such payments, any amounts are due and unpaid by the Guarantor under
this Guarantee.
8. The obligations of the Guarantor hereunder shall not be affected by (i)
the failure of any Noteholder or the Fiscal Agent or Paying Agent to
assert any claim or demand or to enforce any right to remedy against the
Issuer or any other person under the Fiscal Agency Agreement, the Notes or
any other agreement or otherwise; (ii) any rescission, waiver, amendment
or modification of any of the terms or provisions of the Fiscal Agency
Agreement, the Notes or any other agreement, (iii) the release of any
security held by any Noteholder or the Fiscal Agent or Paying Agent for
the guaranteed obligations hereunder or any of them; (iv) the failure of
any Noteholder or Fiscal Agent or Paying Agent to exercise any right or
remedy against any other guarantor of the guaranteed obligations
hereunder; or (v) any change in the ownership of the Guarantor.
9. This Guarantee shall enure for the benefit of the Noteholders.
10. The records of the relevant Clearing System shall be conclusive evidence
of the identity of the Accountholder and the number of Notes credited to
the securities account of such Accountholder. For the purposes hereof a
statement issued by the relevant Clearing System stating:-
(a) the name of the Accountholder to which such statement is issued; and
(b) the aggregate nominal amount of Notes credited to the securities
account of such Accountholder as at the opening of business on the
day on which any payment is due under this Guarantee,
shall be conclusive evidence of the records of the Clearing System as
at the day on which any payment is due under this Guarantee.
11. In the event of a dispute, the determination by the Agent (as defined in
the Fiscal Agency Agreement) of the identity of the Accountholder and the
number of Notes credited to the securities account of such Accountholder
shall (in the absence of manifest error) be final and conclusive for all
purposes in connection with this Guarantee.
12. This Guarantee shall take effect as a Deed Poll for the benefit of the
Noteholders from time to time and for the time being. This Guarantee shall
be deposited with and held by the Fiscal Agent until all the obligations
of the Guarantor hereunder have been discharged in full.
13. The Guarantor hereby acknowledges the right of every Accountholder to the
production of, and the right of every Accountholder to obtain (upon
payment of a reasonable charge) a copy of, this Guarantee, and further
acknowledges and covenants that the obligations binding upon it contained
herein are owed to, and shall be for the account of, the Noteholders, and
that
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each Accountholder shall be entitled severally to
enforce the said obligations against the Guarantor.
14. (a) This Guarantee may not be modified, varied or amended without (i)
the approval of the Noteholders by way of an Extraordinary
Resolution and (ii) the prior written consent of the Guarantor.
(b) Notwithstanding any other provision of this Guarantee, if the Notes
are amended or modified to: (i) increase the principal amount or
interest rate of the Notes, (ii) change the currency of payment with
respect to the Notes, (iii) change the stated maturity of the Notes,
(iv) provide for any new Events of Default under the Notes or (v)
otherwise change the Conditions of the Notes or any provision of the
Fiscal Agency Agreement which has the effect of increasing the
obligations or liability of the Guarantor under this Guarantee, the
terms of this Guarantee shall remain in full force and effect only
as to the amounts agreed to be guaranteed hereunder and on the same
terms as if no such amendment or modification as aforementioned had
occurred.
15. This Guarantee is governed by, and shall be construed in accordance with,
the laws of England.
16. The Guarantor hereby irrevocably agrees, for the exclusive benefit of the
Noteholders and the Accountholders, that the courts of England are to have
non-exclusive jurisdiction to settle any disputes which may arise out of
or in connection with this Guarantee and that accordingly any suit, action
or proceedings (together referred to as "Proceedings") arising out of or
in connection with this Guarantee may be brought in such courts.
17. The Guarantor hereby irrevocably waives any objection which it may have
now or hereafter to the laying of the venue of any such Proceedings in any
such court and any claim that any such Proceedings have been brought in an
inconvenient forum and hereby further irrevocably agrees that a judgment
in any such Proceedings brought in the English courts shall be conclusive
and binding upon it and may be enforced in the courts of any other
jurisdiction. Nothing contained in this clause shall limit any right to
take Proceedings against the Guarantor in any other court of competent
jurisdiction, nor shall the taking of Proceedings in one or more
jurisdictions preclude the taking of Proceedings in any other
jurisdiction, whether concurrently or not.
18. The Guarantor agrees that the process by which any Proceedings are begun
may be served on it by being delivered to The Korea Development Bank,
London branch at its principal place of business for the time being in
England (currently 16th Floor, 99 Bishopsgate, London, EC2H 3XD). If the
Guarantor ceases to maintain a branch in England, the Guarantor shall
appoint a further person in England to accept service of process on its
behalf.
19. Nothing herein shall affect the right to serve process in any manner
permitted by law.
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IN WITNESS whereof the Guarantor has caused this Guarantee to be duly executed
as a deed the day and year first above mentioned.
Executed as a deed )
by THE KOREA DEVELOPMENT )
BANK acting )
by ) ------------------------
in the presence of:- )
Witness:
Name:
Address:
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