Hyundai Heavy to raise $224 mln in bond sale
Hyundai Heavy Industries, the world's largest shipbuilder, said on Friday it would raise 300 billion won ($224 million) in a domestic bond sale to fund its diversification into renewable energy.
South Korea-based Hyundai said in a filing to the Financial Supervisory Service the debt would be offered at a rate of 5.42 percent during this month.
The interest rate is lower than those for smaller rivals which have recently sold new bonds at above 6 percent.
Samsung Heavy Industries , the world's No. 3 ship maker, raised 700 billion won from a domestic bond issue last month to finance its facility expansion and pay back short-term debt.
Daewoo Shipbuilding & Marine also sold 500 billion won worth of bonds at home earlier this week for operational expenses.
As demand for commodities shipment has slowed and shipping freight rates dropped in the wake of the global recession, shipbuilders are struggling with falling orders for new vessels due in part to contracted trade financing.
South Korea-based Hyundai said in a filing to the Financial Supervisory Service the debt would be offered at a rate of 5.42 percent during this month.
The interest rate is lower than those for smaller rivals which have recently sold new bonds at above 6 percent.
Samsung Heavy Industries , the world's No. 3 ship maker, raised 700 billion won from a domestic bond issue last month to finance its facility expansion and pay back short-term debt.
Daewoo Shipbuilding & Marine also sold 500 billion won worth of bonds at home earlier this week for operational expenses.
As demand for commodities shipment has slowed and shipping freight rates dropped in the wake of the global recession, shipbuilders are struggling with falling orders for new vessels due in part to contracted trade financing.