K Line to raise $734mln

Japan’s Kawasaki Kisen Kaisha (K Line) is raising JPY58.61bn ($734m) from a share issue and loans to fund its newbuilding programme, Seatrade Asia online reports.
The Japanese shipowner is issuing 174m new shares raising JPY28.61bn, and borrowing JPY30bn through subordinated loans.

“Due to the continued deterioration of the containership and dry bulk markets, combined with the effects of the Great East Japan Earthquake, high yen, and fuel price increase, our company’s operating environment deteriorated drastically, leading to the recording of a negative net income in fiscal year ending March, 2012,” K Line said.

The company said the proceeds from the planned fund raising were required for “expansion of stable earnings base” and “establishment of a solid financial foundation”.

K Line revised its forecast for the first six months of FY2012, ended 30 September, to a JPY7bn loss, compared to a JPY1bn profit forecast previously.