South Korea’s state-backed asset manager KAMCO has joined forces with Standard Chartered Singapore to expand smaller domestic shipowners’ access to dollar-denominated funding. The initiative starts with a KRW286bn ($207m) vessel fund that KAMCO has set up for an unnamed mid-tier shipping firm headquartered in Busan.
Standard Chartered is providing co-financing for the deal and will collaborate with KAMCO on further financing mechanisms, such as foreign-currency notes and swap arrangements. Through a memorandum of understanding, the pair also plan to jointly develop new vessel funds and provide medium- and long-term hard-currency credit to South Korea’s small and medium-sized carriers.
KAMCO introduced its ship fund scheme in 2015 to address shortfalls from private financiers and encourage domestic operators to invest in their fleets. To date, the agency has created funds worth roughly KRW2.5trn, facilitating the purchase of 143 newly built and pre-owned vessels.