The Korea Development Bank (KDB) together with four other financial institutions have signed a Memorandum of Understanding worth USD 1.2 billion to support compatriot container shipping companies in their newbuilding programs.
The other four include the Export-Import Bank of Korea, Trade Insurance Corporation, KAMCO and KDB Capital.
The support will be streamlined through a fund, comprising of 60% of senior debt (USD 7.2 billion) and 40% of subordinated investment (USD 4.8 billion), the bank said.
In order to be eligible for the financing, the companies will, inter alia, have to keep their debt to equity ratio below 400%. Priority would be given to companies looking to buy 10 ships of around 13,000 TEU, KDB added.
As explained, the move is aimed at alleviating the financial burdens on shipping companies which are already hit hard by the industry downturn.
World Maritime News Staff