The Shanghai branch of Bank of China (BOC)<601988><3988> was recently authorized to grant US$2.93 billion in loans to COSCO Container Lines Co Ltd (COSCON), one of the world's leading providers of container shipping services, during the next three years, the official Xinhua News reported on Monday.
According to the plan, BOC Shanghai branch will grant a credit line of US$1.75 billion to COSCON for the coming two years to finance the construction and operation of 28 container vessels. In the meantime, US$1 billion worth of liquidity loans will be granted to the company in the next three years to help it cover operating costs.
BOC's Hong Kong branch is a co-participants in COSCON's 28 container vessels project, and will shoulder 10% of the financing, while the Shanghai branch will handle 90%.
COSCON is an affiliate of state-owned China Ocean Shipping (Group) Company, one of the world's leading marine transportation companies. It currently owns 146 container vessels and operates 21 domestic shipping routes as well as over 80 international shipping routes.
According to the plan, BOC Shanghai branch will grant a credit line of US$1.75 billion to COSCON for the coming two years to finance the construction and operation of 28 container vessels. In the meantime, US$1 billion worth of liquidity loans will be granted to the company in the next three years to help it cover operating costs.
BOC's Hong Kong branch is a co-participants in COSCON's 28 container vessels project, and will shoulder 10% of the financing, while the Shanghai branch will handle 90%.
COSCON is an affiliate of state-owned China Ocean Shipping (Group) Company, one of the world's leading marine transportation companies. It currently owns 146 container vessels and operates 21 domestic shipping routes as well as over 80 international shipping routes.