BBC Program

Finance for ship introduction

BBC Program

The BBC (bareboat) program is a transaction type of leasing ships purchased and owned by the KOBC to shipping companies.

Feature and Benefit

  • Minimize capital investment upon ship introduction: Securing high-priced ships by paying a small fee, such as the initial rental fee
  • Flexible leasing: Profit route expedited standby period
  • Minimization: Securing necessary ships within a brief period without waiting for construction period (order → delivery)
  • Solution to resale value risk: Avoiding ship price fluctuation risk by returning ships at the end of a lease period

Main financial conditions (Example of conditions)

Financial structure Principle of investment through ship investment companies according to the Ship Funds under Ship
Investment Company Act
Ship fund management Management companies perform duties of shipowners as a shipowner's agent and ship fund manager
Target ship Planning for negotiate with shipping companies
Purchase amount Within 100% of ship price valuation amount
Ship price evaluation Planning to negotiate with shipping companies
Lease period Considering business structure within the residual useful life
Charterage Estimation in consideration of purchase amount, the estimated residual value and company's credit
Collection method Monthly pre-collection

Financial structure diagram (Example of use of ship investment company)

Financial structure(Use of Ship investment company(Example))