Samsung Heavy Industries eyes $440m bond issue

Samsung Heavy Industries (SHI) plans to raise KRW500bn ($440m) from a bond issue in September, Seatrade Asia online reports.
The funds raised would most likely be used to generate cash flows as the yard turn to offshore orders, where the typical heavy-tail payment terms require yards to fork out larger amounts of cash upfront, according to analysts.

The South Korean shipbuilder had issued two bonds worth a total of KRW700bn in February this year.

Meanwhile, rival yards Hyundai Heavy Industries (HHI) and Daewoo Shipbuilding & Marine Engineering (DSME) had also employed similar tactics in raising funds. DSME pocketed KRW500bn last month while HHI has a KRW1trn bond in the pipeline.