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31.10.2019

Artikel Nummer: 29464

HMM issues convertible bond for new investments


The South Korea-headquartered carrier Hyundai Merchant Marine (HMM) plans to issue a convertible bond with a volume of KRW 660 billion (USD 562.4 million). The shipping company is highly indebted with KRW 4.1 trillion KRW (USD 3.49 billion). Due to the shipping company's difficult situation, it is expected that the convertible bond will mainly be issued to the Korea Development Bank and Korea Maritime Promotion Corporation.

 

The funds of KRW 490 billion (USD 417.6 million) will be used for investments into ship and equipment, eco-friendly facilities, operational expenditure and to improve the company’s financial structure. A further KRW 170 billion (USD 144.9 million) will be used for working capital.

 

The convertible bonds have a surface interest rate of 3%, but this can potentially be increased up to a cap of 10%. One-quarter of the annual interest rate is paid every three months until maturity on 28 October 2049. The full amount of the bond is repayable on that date. (fd)

www.hmm21.com

 

 

 

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