DSME secures 2.1 trillion won in first half

Troubled shipbuilder Daewoo Shipbuilding & Marine Engineering announced Wednesday that it secured 2.1 trillion won ($1.8 billion) in capital during the first half of the year.

The shipbuilder issued 1.3 trillion won of perpetual bonds on Wednesday and sold them all to the state-run Export-Import Bank of Korea.

DSME will only pay 1 percent interest for the bonds due to expire in 30 years. Though the bond has an expiration date the payment can be delayed for as long as needed, though interest rates can be adjusted if the date is extended.

On June 13, the company had already secured 793 billion won via a paid-in capital increase supported by its creditor banks including the Korea Development Bank.

When the procedure for capital increase and the issuing of perpetual bonds is finalized, the debt rate of the shipbuilder will fall from 1,557 percent at the end of last quarter to 400 percent by the end of the next quarter.

However, 800 billion won of capital earned through corporate bonds is not guaranteed. Though the majority of bondholders agreed to adjust the debt, an individual investor has appealed against the plan.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]