State-run Shipping Corp of India (SCI) is looking to raise nearly $300 million via debt by the end of this fiscal to buy vessels, its finance director told reporters on Wednesday. The funds will be used for vessel acquisitions, B K Mandal said, adding banks are more willing to lend to shipping firms now compared to last year.
"We have to contract more loans. We are looking to tie up loans with foreign banks for about $300 million," Mandal said.
The company has an orderbook of 32 vessels worth $1.6 billion, its Chairman and Managing director S. Hajara told shareholders at the firm's annual general meeting.
The company plans to buy some second hand vessels instead of new ones as rates have fallen steeply.
SCI, whose debt is 0.4 times its equity, expects 2009/10 earnings to be bleak. "Results would not be good as charter rates are at a very low level and will continue to remain at low levels for some time," Hajara added.
Shares of SCI ended up 0.96 percent at 141.50 rupees in a Mumbai market that closed 1.63 percent higher.
"We have to contract more loans. We are looking to tie up loans with foreign banks for about $300 million," Mandal said.
The company has an orderbook of 32 vessels worth $1.6 billion, its Chairman and Managing director S. Hajara told shareholders at the firm's annual general meeting.
The company plans to buy some second hand vessels instead of new ones as rates have fallen steeply.
SCI, whose debt is 0.4 times its equity, expects 2009/10 earnings to be bleak. "Results would not be good as charter rates are at a very low level and will continue to remain at low levels for some time," Hajara added.
Shares of SCI ended up 0.96 percent at 141.50 rupees in a Mumbai market that closed 1.63 percent higher.