Hyundai Heavy secures refund guarantee from banks

Hyundai Heavy secures refund guarantee from banks

After a month of discussions, a consortium of banks in South Korea have stepped up to offer Hyundai Heavy Industries a refund guarantee for its latest order, according to Yonhap reports.

The shipyard won a $112m contract in late August to build two 158,000-dwt suezmaxes for Greece’s Enterprises Shipping & Trading.

The banking consortium, led by KEB-Hana Bank, have been concerned about their credit exposure to ailing shipbuilders in South Korea and were initially reluctant to offer a refund guarantee for the order.

Since 2016 began, Hyundai Heavy has only won eight new orders, spanning just 14 firm vessels plus two options.

However, another order may be on the way. Earlier this week, Splash reported that Livanos-led Sun Enterprises is negotiating with the shipyard for two-option-two aframax tankers for 2018 delivery.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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