Stephenson Harwood advises on US$145 million KOBC backed financing

Law firm Stephenson Harwood (Singapore) Alliance has advised ING Bank on the structuring and documentation of a US$145 million multi-tiered debt financing, backed by Korea Ocean Business Corporation (KOBC). This was the second in a series of highly structured KOBC financings arranged by ING, and represents a total arranged debt of US$300 million.

KOBC is a state-backed ship finance institution in Korea, established to support the Korean shipping industry. This financing involved senior, mezzanine and junior tiers of debt, limited recourse for senior lenders, as well as complex security interest and intercreditor considerations. It required KOBC support in the form of a KOBC guarantee in favour of the mezzanine and junior lenders, and the incorporation of a KOBC special purpose vehicle. It also involved the sale-purchase and lease-back of 48,980 high cube and cargo marine containers to Hyundai Merchant Marine Co. Ltd, with a subsidiary of CAI International Inc. acting as collection agent and container manager for ING.

“The team at Stephenson Harwood was instrumental in helping us put in place this financing, notwithstanding the COVID-19 logistical challenges, which enabled us to continue to support KOBC and HMM, strategically important clients to ING Bank in Asia Pacific,” said Kane Chung, director, ING Bank N.V. Singapore Branch. “In particular, Iain Young and Jeffrey Tanner were pragmatic and commercial and helped us ensure a risk allocation that satisfied all parties involved.”

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The Stephenson Harwood team was led by partner Iain Young and senior associate Jeffrey Tanner in Singapore, who were supported by senior associate Clement Leung and associate Romie Yeo. Additional Singapore law advice was provided by Virtus Law partner Jason Yang and associate Angeline Yap, and Hong Kong law advice was given by partner Elton Chan and associate Tinnie Chan.


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