Korea Development Bank Increases DSME Stake
The state-run Korea Development Bank (KDB) has increased its stake in the South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co. (DSME), according to a stock exchange filing.
Namely, KDB, one of DSME’s main creditors, increased its ownership in the shipbuilder from 49.74 percent to 79.04 percent through a debt to equity swap, MANA correspondent reported.
In November 2016, DSME’s creditors KDB and the Export-Import Bank of Korea unveiled their intentions to financially support the shipbuilder with KRW 2.8 trillion.
Under the plan, KDB intended to convert KRW 1.8 trillion of debt into equity. The bank previously converted around KRW 400 billion worth of loans into DSME stocks.
The company’s second creditor, the Export-Import Bank of Korea, was expected to buy KRW 1 trillion worth of bonds that would be sold by the shipbuilding company.