NYK to issue $630.8m in bonds
NYK aims to raise ¥160bn in fresh funds this fiscal year. NYK aims to raise ¥160bn in fresh funds this fiscal year.
NIPPON Yusen Kaisha, Japan’s largest shipping operator is to issue a total of ¥60bn ($630.8m) in bonds later this month, the company said today.
An NYK source said the company was aiming to access low interest funds over the long term to service short term loans, capital investment and operating cash. The latest fundraising effort is the first time the company has issued bonds since 2007.
NYK will offer one five-year tranche worth ¥30bn ($315m) and a further ten-year tranche for the same amount. The issue date has tentatively been put at August 11.
The offering will be managed by Mitsubishi UFJ Securities, Mizuho Securities and Nomura Securities, and will carry a double A minus rating from Japan’s rating agency Rating & Investment Information.
During the first quarter of fiscal 2009 — April 1 to June 30 — NYK posted a ¥18.9bn first-quarter loss against a ¥44.3bn profit in the same quarter in the previous year. The company said it expects to report a full-year loss of ¥5bn.
The most important reasons given by NYK for the poor financial performance and pessimistic forecast were the underperformance of the product tanker market, slumping container and car carrier volumes, further compounded by a moribund air cargo market.
NYK’s interest-bearing debt as of March 31 stood at ¥1.1trn, up 5% compared to 2008.
In the current fiscal year ending March 31, 2010, NYK expects to redeem ¥20bn in maturing corporate bonds while paying back ¥200bn in loans.
The company is looking to raise as much as ¥160bn in fresh funds this fiscal year.
A report issued by Rating & Investment information said that NYK’s overarching aspirations to become an integrated logistics provider could pay dividends in the long run but presented additional difficulties in the short term.
“The company has high potential for establishing an earnings structure that is less susceptible to fluctuations in the marine transport market. Nevertheless, the air cargo business is dragging down full year 2009 earnings, despite a strong focus on this area in an effort of diversify businesses. It will take a long time before the diversification contributes to profits,” the ratings agency said.
NIPPON Yusen Kaisha, Japan’s largest shipping operator is to issue a total of ¥60bn ($630.8m) in bonds later this month, the company said today.
An NYK source said the company was aiming to access low interest funds over the long term to service short term loans, capital investment and operating cash. The latest fundraising effort is the first time the company has issued bonds since 2007.
NYK will offer one five-year tranche worth ¥30bn ($315m) and a further ten-year tranche for the same amount. The issue date has tentatively been put at August 11.
The offering will be managed by Mitsubishi UFJ Securities, Mizuho Securities and Nomura Securities, and will carry a double A minus rating from Japan’s rating agency Rating & Investment Information.
During the first quarter of fiscal 2009 — April 1 to June 30 — NYK posted a ¥18.9bn first-quarter loss against a ¥44.3bn profit in the same quarter in the previous year. The company said it expects to report a full-year loss of ¥5bn.
The most important reasons given by NYK for the poor financial performance and pessimistic forecast were the underperformance of the product tanker market, slumping container and car carrier volumes, further compounded by a moribund air cargo market.
NYK’s interest-bearing debt as of March 31 stood at ¥1.1trn, up 5% compared to 2008.
In the current fiscal year ending March 31, 2010, NYK expects to redeem ¥20bn in maturing corporate bonds while paying back ¥200bn in loans.
The company is looking to raise as much as ¥160bn in fresh funds this fiscal year.
A report issued by Rating & Investment information said that NYK’s overarching aspirations to become an integrated logistics provider could pay dividends in the long run but presented additional difficulties in the short term.
“The company has high potential for establishing an earnings structure that is less susceptible to fluctuations in the marine transport market. Nevertheless, the air cargo business is dragging down full year 2009 earnings, despite a strong focus on this area in an effort of diversify businesses. It will take a long time before the diversification contributes to profits,” the ratings agency said.