Five creditor banks agreed on liquidity support worth 129.7 billion won ($116.7 million) for financially struggling Ssangyong Engineering and Construction on Tuesday, according to banks and the builder.

Wooribank, the main creditor, will provide the largest amount of 51.7 billion won, followed by Korea Development Bank with 3.5 billion won, Hana with 1.7 billion won, Shinhan with 1.4 billion won and KB Kookmin with 1.2 billion won.

Following earlier funding worth 6.32 billion won by its largest shareholder Korea Asset Management Corp. on Sept. 12, Ssangyong E&C has secured nearly 200 billion won in liquidity.

The company plans to repay 65 billion won in overdue loans first and then use the leftover for stabilizing management, officials said.

“With an additional 60 billion won secured from a recent Iraqi project last month, we think the liquidity issue has largely been solved until late next month,” said a Ssangyong E&C official.

An Wooribank official also said the final agreement among creditors would be a boost for the builder’s future management and overseas projects.

Amid a prolonged sluggish domestic property market, Ssangyong has stepped up efforts to expand its presence in overseas markets.

More recently on Sept. 20, the nation’s 13th-largest builder won a $200 billion deal involving the construction of water purification and water supply facilities in Kurdistan, an autonomous region of Iraq.

By Lee Ji-yoon (jylee@heraldcorp.com)