Ship S&LB(BBCHP) Program

 Finance for ship on hold


Ship S&LB(BBCHP) program is a transaction in which the KOBC purchases ships owned by domestic shipping companies and leases them back to the shipping companies through BBCHP (financial lease). Upon expiration of lease period, ownership of the ship is transferred to the shipping company.

Feature and Benefit

  • Liquidity for shipping companies due to sale of ship
  • Since only the ownership of a ship is transferred, ship operations can continue unencumbered

Main guarantee conditions

Main guarantee conditions
Financial structure Principle of investment through ship investment companies according to the Ship Funds under Ship
Investment Company Act
Investment target Ships owned by shipping companies
Investment amount Ship price valuation amount×investment ratio
Investment proportion Appropriate in consideration of internal credit rating of the KOBC, status of profit fixed contract, and
business feasibility
Ship price evaluation Reflect appraised value of multiple appraisal agencies recognized by the KOBC
Investment period Within 5 years from the date of acquisition of ships (agreement in consideration of other financial
Applicable interest rate Arrangement in consideration of credit rating, investment period, and investment ratio
Applicable interest rate = Basic applicable interest rate (according to internal system) ±
discount/premium (considering project feasibility and policy factors)
Repayment method Agreement in consideration of target of support, project structure, and project feasibility results

Financial structure diagram (examples)

Financial structure diagram (examples)

* SIC : Ship Investment Company ** SPC : Special Purpose Company