The Korea Ocean Business Corp. said Wednesday it had successfully issued a five-year, $300 million Formosa bond in US dollars to global investors.
A Formosa bond is a foreign-currency bond issued by an overseas institution in Taiwan's financial market. The Korea Ocean Business Corp. first issued a Formosa bond in 2023, and this marks its fourth such issuance.
"This issuance is highly significant in that we secured foreign currency funding on competitive terms, backed by demand from investors in Taiwan and across Asia amid high volatility in global financial markets," a corporation official said.
"In particular, by regularly issuing bonds in the Formosa market every year and expanding our investor base, we succeeded in issuing this bond at an interest rate 3 basis points lower than last year," the official said. "This allowed us to lower our funding costs while achieving one of the lowest interest rates among Formosa bonds issued by public institutions."
The corporation plans to use the funds raised to support the overseas expansion of Korean maritime companies and key transport projects run by domestic shipping firms. The money will go toward investments in overseas maritime and logistics infrastructure projects, including a floating LNG export terminal being pursued in the United States and a logistics center in New Jersey.
Through this, the corporation aims to help Korean maritime companies broaden their overseas business and strengthen their global competitiveness.
The corporation also plans to support national carriers in securing vessels for the stable transport of nationally important cargo, such as energy and petrochemical products, in response to growing uncertainty along key maritime routes, including the Strait of Hormuz.
"Stable foreign currency funding is a crucial foundation for supporting the overseas expansion of our maritime companies and the nation's maritime supply chain," said Ahn Byung-gil, president of the Korea Ocean Business Corp.
alsgp9737@heraldcorp.com
