Korea Ocean Business Corporation Raises $300 Million in Taiwan... Issues Formosa Bonds at Record-Low Interest Rate

Investment in U.S. LNG Terminal and Logistics Center
Support for Securing Vessels for Key Material Transport

Korea Ocean Business Corporation has issued foreign currency bonds worth 300 million dollars in the Taiwanese financial market. The funds, raised at a lower interest rate compared to last year, will be used to support domestic shipping companies for overseas marine and logistics infrastructure investments, as well as for transporting key materials such as energy.

On September 9, Korea Ocean Business Corporation announced that it had completed the issuance of 300 million U.S. dollars in Formosa bonds with a five-year maturity, targeting global investors. Formosa bonds are foreign currency bonds issued by overseas institutions in the Taiwanese financial market. Korea Ocean Business Corporation has issued Formosa bonds four times in total, including this latest issue since its first issuance in 2023.

Korea Ocean Business Corporation explained that this issuance is significant in that it secured foreign currency funds based on demand from investors in Taiwan and across Asia, amid ongoing volatility in the global financial market.

In particular, by issuing bonds in the Formosa market every year and expanding its investor base, the company was able to issue bonds at an interest rate 3 basis points (1bp = 0.01 percentage points) lower than last year. This is the lowest level among Formosa bonds issued by public institutions.

The raised funds will be used for the overseas business expansion of domestic marine companies and core transportation projects by shipping lines. Major investment targets include overseas marine and logistics infrastructure such as a floating LNG (liquefied natural gas) export terminal currently being developed in the United States, and a logistics center in the New Jersey area.

The funds will also support domestic shipping companies in securing vessels for the transportation of key materials such as energy and petrochemical products. Given rising uncertainty in major maritime shipping routes, including the Strait of Hormuz, the plan is to strengthen the shipping capacity of domestic carriers to enhance the national maritime supply chain.

An Byounggil, CEO of Korea Ocean Business Corporation, said, "Stable foreign currency financing is an important foundation for supporting the overseas expansion of our marine businesses and the national maritime supply chain," adding, "We will continue to diversify our funding markets and investor base to support our marine companies’ overseas expansion and strengthen the reliability of the national maritime supply chain."

This content was produced with the assistance of AI translation services.