The Korea Maritime Promotion Corporation has issued $300 million in foreign currency bonds in the Taiwanese financial market. The funds will be used to support investments in U.S. maritime and logistics infrastructure and to secure vessels for national shipping companies transporting essential goods.
On September 9, the corporation announced the completion of a $300 million Formosa bond issuance with a five-year maturity aimed at global investors.
Formosa bonds are issued in foreign currency by overseas institutions in the Taiwanese financial market. This marks the fourth issuance of Formosa bonds by the corporation since its first issuance in 2023.
The interest rate for this issuance is 3 basis points (0.03 percentage points) lower than last year. The corporation explained that regular bond issuances have expanded its investor base, resulting in reduced funding costs and achieving the lowest interest rate among Formosa bonds issued by public institutions.
The raised funds will support the overseas expansion of domestic maritime companies and key transportation projects for national shipping companies. Plans include investments in maritime and logistics infrastructure projects such as floating liquefied natural gas (LNG) export terminals and logistics centers in New Jersey.
Additionally, the funds will assist in securing vessels for national shipping companies that transport essential goods, including energy and petrochemical products. In light of increasing uncertainties in major maritime transport routes, including the Strait of Hormuz, the corporation aims to secure stable transport capabilities and strengthen the national maritime supply chain.
CEO Ahn Byeong-gil stated, “Stable foreign currency procurement is a crucial foundation for the overseas expansion of our maritime companies and the national maritime supply chain. We will continue to diversify our funding market and investor base to support the international expansion of our maritime companies and the stability of the national maritime supply chain, fulfilling our role in policy finance to enhance the competitiveness of the maritime industry.”
* This article has been translated by AI.
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