- First-Ever ECA Financing Based on Time Charters Backed by K-SURE.
- Trafigura Expands Ties with Korean Shippers Through Landmark Financing.
- $200 Million Facility Aims to Boost Mid-Sized Korean Maritime Firms.
The Korea Trade Insurance Corporation (K-SURE) has teamed up with global commodities powerhouse Trafigura to ink a mid- to long-term financing agreement worth USD200 million. This partnership is all about boosting the export activities of Korean shipping companies, reports Trafigura.
A First in ECA-Backed Time Charter Financing
This agreement is a game-changer, marking the first time an Export Credit Agency (ECA) has provided mid- to long-term financial backing based on time charter agreements. It paves the way for a fresh approach to enhancing Korea’s shipping service exports and gives a competitive edge to mid-sized maritime firms.
Financing to Support Korean Shipping Through Charter Fees
The funds from K-SURE will assist Trafigura in covering the time charter fees owed to Korean shipping companies as part of its global freight operations. With plans to ramp up its chartering activities with Korean partners soon, Trafigura is looking to expand its reach.
Boosting Korean Shipping Competitiveness
This agreement aims to bolster the operational strength and negotiating power of Korea’s mid-sized shipping companies. It also represents a significant shift for K-SURE, broadening its export credit coverage to include not just traditional capital goods but also consumer goods and services.
Trafigura’s First ECA Financing Not Linked to Commodities
For Trafigura, this marks its inaugural financing deal with K-SURE and its first ECA-backed facility that isn’t directly connected to commodity trading volumes. The USD200 million financing was facilitated with the help of three banks: Crédit Agricole Corporate and Investment Bank (the coordinating and structuring bank), Barclays Bank Plc, and Oversea-Chinese Banking Corporation Limited.
K-SURE President Highlights Industry Impact
Jang Young-jin, President of K-SURE, emphasised the strategic importance of the financing support: “This support will be an important turning point for enhancing the competitiveness of the domestic shipping industry. In the future, we will continue to actively identify overseas blue-chip charterers and provide financing solutions that support the expansion of Korea’s shipping service exports. We will also actively explore new financial opportunities in sectors such as services to promote national interests.”
Trafigura Strengthens Ties with Korean Shipping
Andrea Olivi, Global Head of Shipping at Trafigura, expressed the company’s commitment to long-term partnerships in Korea: “This innovative financing structure with K-SURE underscores our long-term commitment to developing strategic partnerships in Korea. The support enables us to work more closely with Korean shipping companies and contributes to building a more resilient and diversified maritime supply chain. We are proud to support Korean exporters and strengthen our collaboration with K-SURE.”
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Source: Trafigura
