KAMCO, Standard Chartered launch $211M ship fund for Korean carriers
What's the deal? The Korea Asset Management Corporation (KAMCODealroom has a profile for this one. Try Dealroom →) has set up a 286 billion won ($211 million) ship fund with Standard CharteredDealroom has a profile for this one. Try Dealroom → Bank's Singapore unit to help domestic shipping companies raise capital. The state-run agency announced the fund on August 25.
Why now? Small and mid-sized Korean shipping companies struggle to secure medium- and long-term foreign-currency financing. KAMCODealroom has a profile for this one. Try Dealroom → plans to draw on Standard CharteredDealroom has a profile for this one. Try Dealroom →'s global financing capabilities to widen their funding access.
What's the endgame? The new fund will support a mid-sized shipping company based in Busan. "We will help domestic shipping companies raise capital more stably and improve their financial structures," said Lee Jong-kook, vice president of KAMCO.
The two institutions signed a memorandum of understanding at Standard Chartered's Singapore headquarters on August 24. They agreed to cooperate on foreign-currency funding through measures such as bond issuance and currency swaps, and to jointly explore ways to expand the ship financing market.
The signal: The deal deepens KAMCO's push into ship finance. Since 2015, it has set up ship funds totaling 2.5 trillion won ($1.8 billion), backing 143 used and newly built vessels for domestic carriers.
Read more: en.sedaily.com
Image credit: aagay
