Ship S&LB(BBC) Program

Finance lease for second-hand ships(if applicable)

Ship S&LB(BareBoatCharter)

Ship S&LB(BBC)

The Ship S&LB (BBC) Program features a transaction in which the KOBC purchases a ship owned by a shipping company and leases it back to the shipping company through the BBC (Bareboat Charter) method.

Feature and Benefit

  • Liquidity can be secured through sale of ships owned by shipping companies
    Minimize capital investment upon ship introduction: Securing high-priced ships by paying a small fee, such as the initial rental fee
  • Flexible fleet management : lessening standby period for profitable shipping routes
  • Standby period minimization: Securing necessary ships within a short period of time 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 terms(Example)

Main financial conditions
Financial structure Principle of investment via ship investment companies according to the Ship Funds under Ship
Investment Company Act
Ship fund trust management Management companies perform duties of shipowners as a shipowner's agent and ship fund trust
Target ships Planning to negotiate with shipping companies
Purchase amount Within 100% of ship price valuation amount
Ship price evaluation Planning to negotiate with shipping companies
Lease period Consider a business structure within residual useful life
Charter hire Estimation in consideration of ship purchase amount, ship's future residual value and company's credit
Collection method Monthly preemption

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

Inverstment by the KOBC

In case of direct investment in construction