Marine Link
Friday, January 27, 2023

HMM, Korea Shipping Company Pact for Sale and Leaseback for Ten Boxships

Maritime Activity Reports, Inc.

March 8, 2017

 Hyundai Merchant Marine (HMM) has inked a memorandum of understanding (MoU) with state-backed Korea Shipping Company (KSC) for vessel sales worth up to Won850bn ($739.4m) book value, which will strengthen HMM's financial position.

 
Under the deal, HMM will sell 10 of its container ships to KSC for around Won150bn market value of the vessels, and KSC will finance the outstanding amount by purchasing shares and bonds from HMM.
 
The ship financing company will buy around Won100bn worth of shares and Won600bn in convertible bonds from HMM. 
 
HMM will consider leasing back the 10 vessels in the days ahead. (Sales and Lease Back).
 
HMM official said ""The contract will improve the financial structure and liquidity by reducing the debt ratio as well as streamlining the container ship cost structure" and "we also expect to boost competitiveness through Global Shipping Fund and New shipbuiding financing program."
 
Marine News takes a deep dive into the U.S. offshore wind industry, where stakeholders across the supply chain—on land and at sea—can expect a raft of new challenges and opportunities.
Read the Magazine

US Offshore Wind: Our Interconnected Future

Vessel Conversions Gaining Favor in US Offshore Wind

Subscribe for
Maritime Reporter E-News

Maritime Reporter E-News is the maritime industry's largest circulation and most authoritative ENews Service, delivered to your Email five times per week