Ship refinance guarantee program

Finance for ship on hold

Ship re-financing

The Ship Refinancing Guarantee Program is a guarantee business by which the KOBC provides debt guarantee to secure previous default of creditors of shipping companies if ship owners wish to borrow new funds for borrowing or repaying borrowed funds from creditors (financial institutions, etc.), with ships owned by domestic shipping companies as collateral.

Feature and Benefit

  • Lower interest rate by refinancing the existing high-interest ship finance by the KOBC.
  • Secure liquidity of shipping companies using ships as collateral

Main guarantee conditions

Main guarantee conditions
Guarantee beneficiary Creditors of main debt contract (financial institution that handles loans)
Guarantee period Within financial period of main debt
Guaranteed amount Financial amount subject to guarantee
Guarantee ratio Financial amount subject to guarantee
Guarantee amount 95% or more
Guarantee rate Guaranteed amount×guarantee ratio
Guarantee fee Basic rate × (1 ± discount/premium rate (considering project feasibility and policy factors))
Guarantee debt* 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: Prior guarantee fee of KRW 2.5 billion or more posterior guarantee fee of KRW 2 billion
Guarantee period: 6 years or more (Small and medium-sized shipping companies: 2 years or more)
* Both requirements must be met, and small and medium-sized shipping companies can be applied with eased installments

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

Financial structure diagram (examples)

Refinancing for ships owned by shipping companies

In case of direct investment in KOBC

Refinancing for ships owned by overseas SPC

In case of direct investment in KOBC