Korea’s middle-standing operator Polaris Shipping inked a newbuilding order for large bulkers.
According to industry sources and brokers, the shipowner placed an order for three 250,000 dwt very large ore carriers (VLOC) and one 207,000 dwt capesize bulker at Hyundai Samho Heavy Industries of Korea.
Delivery is planned in 2014 and 2015 with around $200m contract value in total; the price of each newbuilding comes to around $50m.
Having world’s leading shippers as clients, such as POSCO, Korea Electric Power Corporation (KEPCO) and so on along with Vale of Brazil, Polaris ordered the newbuildings based on a long-term contract of affreightment (COA) with a large shipper.
Last year, Polaris had acquired 10 units of 300,000 dwt VLOCs from Vale in condition of penning a 12-year COA contract with Vale.
At that time, Korea Development Bank (KDB) participated as a financing bookrunner and formed a creditors group comprising of KB Kookmin Bank, Korea Exchange Bank, National Federation of Fisheries Cooperatives and so on, providing ship-purchase financing worth $334m out of a total price, around $600m.
Currently, the Seoul-based shipowner has 19 VLOCs and four capesize bulkers in its owned fleet and three VLOCs and one capesize under its managed fleet.