NOL to issue notes to raise $1.5 billion
Neptune Orient Lines, parent of APL, established a program to issue up to $1.5 billion in medium-term notes that the company said will be used for general corporate purposes.
DBS Bank, HSBC and Standard Chartered Bank have been appointed to arrange the program.
The announcement comes a year after NOL raised $972 million through a rights issue that gave shareholders the option to subscribe for three rights to three shares for every four shares that they owned.
After the recession in 2009 when container lines lost an estimated $15 billion, carriers are seeking to raise money to shore up their balance sheets and finance expansion.
NOL posted a net loss of $741 million last year but is enjoying higher volume and rates in 2010. Through May 28, APL’s container volume was up 41 percent and average revenue per container increased 7.4 percent.
DBS Bank, HSBC and Standard Chartered Bank have been appointed to arrange the program.
The announcement comes a year after NOL raised $972 million through a rights issue that gave shareholders the option to subscribe for three rights to three shares for every four shares that they owned.
After the recession in 2009 when container lines lost an estimated $15 billion, carriers are seeking to raise money to shore up their balance sheets and finance expansion.
NOL posted a net loss of $741 million last year but is enjoying higher volume and rates in 2010. Through May 28, APL’s container volume was up 41 percent and average revenue per container increased 7.4 percent.