Hyundai Merchant Marine (HMM) has said it is selling KRW 1bn ($878m) of bonds as it expands its fleet.
Its biggest shareholder, state-backed Korea Development Bank (KDB), will buy KRW 400bn of convertible notes and a KRW 600bn tranche of bonds with warrants.
Proceeds are going towards capital expenditure and general working capital.
It had earlier been reported that KDB and Korea Ocean Business Corp (KOBC) could buy KRW 400bn of bonds each from HMM.
The deal is said to be part of state funding and guarantees worth KRW 6 trillion to finance HMM's 20-ship newbuilding programme.
It has recently confirmed 20 containerships at Hyundai Heavy Industries (HHI), Samsung Heavy Industries and DSME.
DSME and Samsung are building seven and five 23,000-teu units for HMM respectively, with delivery in the second quarter of 2020.
HHI will construct eight 15,300-teu units for handover in the second quarter of 2021.
The total order will cost KRW 3.15 trillion, HMM has said.
