Singapore-based commodity trading company Trafigura has landed a $200m mid- to long-term financing agreement with Korea Trade Insurance Corporation (K-SURE) to boost the export business of Korean shipping companies.

The deal marks the first time an export credit agency has offered a mid- to long-term financial support grounded in time charter agreements, Trafigura says in a July 29 statement. 

It also says the financing will help cover costs such as time charter fees paid by Trafigura to Korean shipping companies as part of its global freight operations.

Trafigura charters vessels from around the world and is planning to expand chartering activities with Korean partners in the coming years. 

The trader has committed to develop strategic partnerships in Korea and play a key role in helping mid-sized Korean shipping companies to strengthen their negotiating power and operational capabilities, Trafigura said in its statement.

Andrea Olivi, global head of shipping at Trafigura, said: “This innovative financing structure with K-SURE underscores our long-term commitment to developing strategic partnerships in Korea. The support enables us to work more closely with Korean shipping companies and contributes to building a more resilient and diversified maritime supply chain.”

The $200m facility was supported by three banks: Crédit Agricole Corporate and Investment Bank, who acted as coordinating and structuring bank for the facility, Barclays Bank Plc and Oversea-Chinese Banking Corporation Limited.