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HMM set for $515m boost from new government fund

South Korea’s Hyundai Merchant Marine (HMM) is set to be the first beneficiary of funds from the country’s new Korea Shipping fund, according to Pulse.

The state-backed ship financing firm was announced last October and launched on Tuesday with an initial paid-in capital of KRW1trn ($860m). Over time, the fund will be given KRW6.5trn ($5.6bn) to help local shipping firms buy new vessels.

HMM is set to receive more than KRW600bn ($514.5m) as the government moves to develop HMM as Korea’s flagship line.

A government source which revealed the deal to Pulse, said that the funding is being coordinated after a specific request from HMM.

The report says the fund will provide sale and leaseback deals for HMM as well as buy bonds issued by HMM to improve liquidity.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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