State-backed China Cosco is proposing to issue up to $2bn worth of bonds of no more than 10 years following a net loss of RMB2.76bn ($431.7m) in the first-half of the year, Seatrade Asia online reports.“In order to satisfy all capital needs of the company for future operation and after taking into account of the tight credit availability within China and the fact that the company requires capital in US currency, the company intends to issue the bonds through its offshore wholly-owned subsidiary,” China Cosco announced on Thursday.
The Hong Kong-listed shipping firm slipped into the red in the first-half as against a net profit of RMB3.41bn in the same period of 2010.
The company blamed declining freight rates and high oil prices for the losses.
Revenue for the period was largely stable at RMB42bn compared to RMB45.6bn a year ago.
“In the second-half of the year, it is expected that the delivery of 8,000 teu large vessels will put pressure to the major routes, including Asia-Europe and trans-Pacific routes as uncertainties on the demands in Europe and the US increase,” China Cosco said.
“The shipping companies will launch new freight rate adjustment plans and impose peak season surcharge when market opportunities arise.”
The Hong Kong-listed shipping firm slipped into the red in the first-half as against a net profit of RMB3.41bn in the same period of 2010.
The company blamed declining freight rates and high oil prices for the losses.
Revenue for the period was largely stable at RMB42bn compared to RMB45.6bn a year ago.
“In the second-half of the year, it is expected that the delivery of 8,000 teu large vessels will put pressure to the major routes, including Asia-Europe and trans-Pacific routes as uncertainties on the demands in Europe and the US increase,” China Cosco said.
“The shipping companies will launch new freight rate adjustment plans and impose peak season surcharge when market opportunities arise.”