South Korean shipping major Hyundai Merchant Marine (HMM) has unveiled its plans to sell up to KRW 1 trillion (USD 883.8 million) of bonds.
The company’s biggest shareholder, the state-owned Korea Development Bank (KDB), is set to take over the entire offering, which includes KRW 400 billion of convertible notes and KRW 600 billion of bonds with warrants.
The financial boost from the government comes on the back of HMM’s order for 20 containership giants. The company would reportedly use the proceeds from the bond offering to fund the construction of these units, acquire a stake in Hyundai Pusan New-Port Terminal (HPNT), and boost its working capital.
HMM would allegedly pay KRW 315.3 billion or 10% of the KRW 3.153 trillion needed to frame the containerships, while some KRW 164 billion would be used to acquire the HPNT stake.
In late September 2018, HMM signed formal contracts for the eco-friendly containerships with Daewoo Shipbuilding & Marine Engineering (DSME) and Samsung Heavy Industries (SHI), which would build seven and five 23,000 TEU containerships, while the third order for eight 15,000 TEU containerships went to Hyundai Heavy Industries (HHI).
World Maritime News Staff