HMM recapitalizes its fund about KRW 218.9 bln

Hyundai Merchant Marine (HMM) officially announced that the company increased capital by issuing new stocks to raise operating funds.

HMM issued 11 million new stocks at a price of KRW 19,900 each. The Korean-carrier plans for a flotation on the stock exchange on January 7, 2013, with stocks superintend by Daishin Securities, a Korean financial services company.

The Korean-carrier will use the funds next year to pay for rental fees for container equipment, shipping finance, ship charters, and other costs. The funds will cover lease payments of KRW 4.8 billion to DVB, KRW 3 billion to NIBC in January, KRW 2.7 billion to BNPP, and KRW 3.8 billion to Beacon in February.

HMM will also pay for shipping finance of KRW 71 billion for its own ships.

HMM will discharge KRW 9.9 billion for the "Hyundai Technopia", KRW 10.3 billion for the "Hyundai Cosmopia", KRW 8.4 billion for the "Hyundai Oceanpia", KRW 25 billion for the "Hyundai Brave", and KRW 3.3 billion for the "Hyundai Courage" in January.

In addition, the company will settle KRW 3.3 billion for the "Hyundai Pace", KRW 1.7 billion for the "Hyundai Unity", and KRW 9.1 billion for the "Hyundai Confidence" in February.

Also, the carrier will pay a total of KRW 133.6 billion - KRW 68.6 billion in January and KRW 65 billion in February - to Zodiac and Danaos for chartering fees. < 김보람 기자 brkim@ksg.co.kr >