Ship introduction guarantee program

Finance for ship introduction

Ship introduction guarantee

The Ship Introduction Guarantee Program is a guarantee initiative by which the KOBC provides debt guarantees to cover risk of default by shipping companies regarding funds borrowed from creditors (financial institutions, etc.) when a domestic shipping company introduces new ship builds or second-hand Ships.

Feature and Benefit

  • Reinforcing credit of shipping companies, improving repayment possibility for financial institutions, and revitalizing ship finance
  • Overseas financial institutions (creditors) debt guarantee

Main guarantee conditions

Management Criteria
Guarantee beneficiary Creditors of main debt contract (financial institution that issues loans)
Guarantee period Within financial period of main debt
Guaranteed amount Financial amount subject to guarantee
Guarantee ratio 95%
Guarantee amount Guaranteed amount × guarantee ratio
Guarantee rate Basic rate - discount rate + premium rate
Guarantee fee Guarantee amount × Guarantee rate
Guarantee debt* The amount of outstanding principal multiplied by guarantee ratio and equivalent of outstanding
Installment requirement* Criteria for lump-sum payment of guarantee fee : Guarantee fee for Senior Loan of KRW 2.5 billion or
more Guarantee fee for Junior(Subordinated) Loan of KRW 2 billion
Guarantee period: six years or more (Small and medium-sized shipping companies: Two years or more)
*Both requirements must be met, and small and medium-sized shipping companies can be granted
eased installments

※ For more details, refer to the KOBC’s guarantee agreement Ⅱ at the time of consultation.

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

Structure diagram for new shipbuilding introduction

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

Structure diagram of second-hand ship introduction

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