KTB Global Alternative Investment - Maritime€¦ · • Competitive Terms & Conditions •...
Transcript of KTB Global Alternative Investment - Maritime€¦ · • Competitive Terms & Conditions •...
May 24 2018 @ Marine Money Oslo
KTB Global Alternative Investment - Maritime
Opportunity & Solution
KTB Financial Group – Leading Capital Market Player
Top Tier Korean Financial Group with 6 Subsidiaries & over 40 affiliates
Venture Capital & CRC Investment
Venture Capital in US region
PEF Investment
Credit Investigation
Thailand Subsidiary
Collective Investments, Advisory, Discretionary Investments and Sales
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Established in 1981
Listed in 1996
358 Employees
Market Cap of 232 B KRW
(≒215M USD)
ComprehensiveAsset Management
1999.09 Total 89 membersAUM KRW 11.1tn
(US$ 10.3bn)
KTB AMC – Alternative Investment Leader in Korea
Commitment in Alternative Investment Area
Shipping Real Estate Infrastructure Power AircraftRenewable
Strong focus on Al with 22 professionals
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KTB Footprint in Global Alternative Investment Areas
KTB in Global Medias
Global Aircraft Finance Conference
2018.03.23
KTB in particular has been a staunch supporter of the sector and is continuing to do so despite the market challenges. Choi described aviation finance as a pillar of the Korean capital market and KTB is doubling its efforts to generate and invest in new opportunities that will grow the sector…………
Link
http://www.aviationnews-online.com/editorial-comment/korea-a-market-to-be-proud-of/
KTB, KDB and Uni-Asia team up on ship finance
2017.07.21
KTB, KDB and Uni-Asia team up on shipfinance overseas owners through Ocean Value-up fund.
KTB Asset Management has teamed up withdomestic and Japanese partners on a new shipfinance venture.
An MoU has been signed with state-run KoreaDevelopment Bank (KDB) and Uni-Asia to providecash and management services for KDB's OceanValue-up Fund scheme…..
Link
http://www.tradewindsnews.com/finance/1312998/ktb-kdb-and-uni-asia-team-up-on-ship-finance
South Korean Investors Pile Into U.S. Commercial Property Debt
2018.04.17
Some 21% of foreign investment in U.S. real-estate debt as of mid-April came from the Asian nation
U.S. commercial real-estate owners are raking indebt capital from South Korean investors huntingfor higher returns and better asset diversification.In New York City, KTB Asset Managementrecently agreed to provide a five-year, fixed-rateloan to RFR Holdings for the refinancing of 285Madison …..
Linkhttps://www.wsj.com/articles/south-korean-investors-pile-into-u-s-commercial-property-debt-1523988201
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Korean Capital Market – Alternative Investment
Rising Alternative Investment in Korean Capital Market
(Source: The bank of Korea, Ministry of Finance, FSS )
Alternative Investment/GDP (Left)
Alternative Investment/Total Investment (Right)
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Korean Capital Market – Alternative Investment
Overview of Korean Institutional Investors and Asset Classes
Pension Fund, 36.0%
Life Insurance,
24.6%
General Insurance,
12.8%
Bank, 6.1%
Security, 1.8%
AMC, 18.7%
PPP (SOC), 39.5%
REIT's, 7.0%
Property Fund, 22.6%
Special Asset, 15.4%
Hedge Fund, 1.2%
PEF, 14.3%
Major Investment Asset ClassMajor Korean Institutional Investor in AI area
(Source: The bank of Korea, Issue Note 2016-5,)
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Korean Capital Market – Alternative Investment
General Trend of the Investors (1/3)
Overseas Investment Area by Investor
(Source: The bank of Korea, Issue Note 2016-5 )
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Korean Capital Market – Alternative Investment
General Trend of the Investors (2/3)
Overseas AI vs. Domestic AI
(Source: The bank of Korea, Issue Note 2016-5 )
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Korean Capital Market – Alternative Investment
General Trend of the Investors (3/3)
Overseas AI via AMC
(Source: The bank of Korea, Issue Note 2016-5 )
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Korean Sovereign Financing Options for Maritime Industry
Overview of Korean Maritime Financial Institutions
• Export Credit Agency
• Buyer’s Credit Program (Direct Loan & Guarantee)
• Eco-Ship Fund & Bond Guarantee
• Export Credit Agency
• Buyer’s Credit Program (Medium & Term Export Insurance)
• Korea Asset Management Corp.
• KAMCO Shipping Fund Program (Senior & Junior Loan) under Korea SIC Act. Scheme
• Korean Shipping Company only
• State-run Policy Bank
• All Bank Financial Products
• Ocean Value-up Fund Program
• Korea Shipping & Maritime Transportation
• Tonnage Bank Program
• Will merge into Korea Maritime Corporation*in Aug of 2018
• Korea Maritime Guarantee Insurance
• Insurance Program mainly support for junior loan
• Will merge into Korea Maritime Corporation* in Aug of 2018
* Korea Maritime Corporation is set to take over functions of KSMART and KMGIC
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KTB Funding Solution for Global Maritime Industry
Combined funding sources from Sovereign and Capital Market
“A New additional funding Solution
for Global Maritime Industry”
Korean Capital MarketAlternative Investment
• Korean Sovereign Financial Institutions
• Strong Support for Maritime Industry
• Competitive Terms & Conditions
• Flexible Approach for co-investment
• Leading alternative investment manager in Korea
• Extensive track record with wide maritime network
• Solid understanding of Korean sovereign & capital market Program
• Global investment platform provider
• Institutional Investors’ Increasing allocation
• Strong Drive for Overseas Investment
• Diversification of Investment Portfolio
• Recovery of Appetite for Maritime Sector
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Ocean Value-up Fund Program
Program Strategy and Investment Guideline
Counter Party
Project Focus
Target Asset
PRUDENT COUNTER PARTY, PROJECT & ASSET SELECTION WITH BALANCED INTEREST
Partnering with clear business plan, operation capability and financial soundness
All shipping & offshore asset strategically crucial for operator / end user
Opportunity based on strategic reason, robust contractual arrangement and alignment of interest
• Fleet chartering & operation strategy
• Capable for ship management in compliance with high industry requirement
• Viable of operator/end user’s financial projections
Enhancing business relationship with well established operator and end user
Continued project development for high quality investment portfolio
• Targeting key assets only for operator / end user
• Convincible background for project development
• Confirmation of Interest alignment
• Aiming to structure underlying investment with protective security
• Generating predictable and periodic cash flows
Economics Optimization of all involved parties’ expectation in consideration of market rate
Pursuing on risk-adjusted return based on robust contractual structure
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Ocean Value-Up Fund Program – Eligible Project
Newbuilding
Ocean Value-up Fund
KDB
Investment Scheme
Korean Yard
S P C (FOC**)
Financial & Strategic Investor
International Owner / Sponsor
[30~50]% of Fund Interest
Fund Management& Instruction
BBC/HP or Equity
[50~70]% of Fund Interest
*FOC (Flag of Convenience.i.e. Panama, Marshall Islands)
New Building
Contract
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Ocean Value-Up Fund Program – Eligible Project
Secondhand / Refinancing
Ocean Value-up Fund
KDB
Investment Scheme
Korean Charterer *
S P C (FOC**)
Financial & Strategic Investor
International Owner / Sponsor
BBC/HP
[30~50]% of Fund Interest
Fund Management& Instruction
Equity
[50~70]% of Fund Interest
*FOC (Flag of Convenience.i.e. Panama, Marshall Islands)
* Korean Charterer1) Korean Shipping Company2) Korean Cargo Provider
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Korean Alternative Capital Solution – Total Debt Package
Joint Support from Korean Sovereign and Capital market for Global Maritime Industry
Ocean Value-up Fund
KDB
Investment Scheme
S P C (FOC**)
Korean Capital Market
Fund Management& Instruction
[50]% of Fund Interest
*FOC (Flag of Convenience.i.e. Panama, Marshall Islands)
Senior Loan ([60]~80%)
International /Local Bank
Insurance(Credit Enhancement)
Korean Yard International Owner / Sponsor
New Building
Contract
BBC/HP or Equity
Junior Loan ([10]~[20]%)
[50]% of Fund Interest
Thank you !
Woo-Song Jung
Director / Head of Project Finance
Tel : +82 2 788 8463Mobile : +82 10 5583 6586E-Mail : [email protected]