KAMCO Issues $123 Million Foreign Currency Floating Rate Bonds

[Asia Economy Reporter Kwangho Lee] Korea Asset Management Corporation (KAMCO) announced on the 26th that it has successfully issued foreign currency floating rate notes (FRN) worth 123 million USD (approximately 145 billion KRW).

This bond issuance is KAMCO's first foreign currency FRN issuance and was promoted as part of the government's 'Corporate Asset Sale Support Plan' to secure funds for the newbuilding support project of ultra-large crude oil tankers for domestic shipping companies.

Despite concerns over increased market volatility due to COVID-19 and other factors, KAMCO raised foreign currency funds twice through the lead manager, KDB Asia Ltd, the Hong Kong branch of the Korea Development Bank, based on the external credibility of KAMCO's ship financing, securing relatively favorable conditions and low additional interest rates.

The procured foreign currency funds will be used to cover the costs of constructing two 300,000-ton ultra-large crude oil tankers under the newbuilding ship financing support contract signed between KAMCO and Pan Ocean Co., Ltd. last April.

Shin Heung-sik, Acting President of KAMCO, said, "We hope this foreign currency procurement fund will serve as a catalyst for revitalizing domestic ship financing," adding, "Going forward, KAMCO will actively respond to the government's strategy to realize the country as a leader in the shipping industry by minimizing the investment burden of new ships for national shipping companies and contributing to the promotion of high-efficiency and eco-friendly ship introduction."

This content was produced with the assistance of AI translation services.