Shipping Industry Financing
On September 17, Korea Development Bank (KDB) announced it arranged a shipping finance fund of US$216 million for Polaris Shipping, a company which makes the world’s largest Very Large Ore Carrier (VLOC).
This shipping financing is for four carriers (three 250K ton carriers and one 208K ton) used to fulfill a shipping contract. The total cost is US$254 million, US$216 million of which is arranged. Lenders include KDB (US$166 million), Nong Hyup (US$30 million), and Suhyup (US$20 million).
Domestic mid-size company Polaris Shipping renewed its four iron ore carriage contract with POSCO in July, and will be in charge of transporting iron ore from Australia and Brazil to Korea for the next 20 years. The estimated sales during this period are as much as US$2 billion.
The carriers will be built by Hyundai Samho Heavy Industries to be completed and transferred by 2015.