China Shipping Container Lines plans to raise RMB 1.8 billion from a domestic bond sale to finance the purchase of a dozen vessels as it capitalizes on the appreciation of the local currency and ease the impact of higher interest rates.
The 10-year bond, which will be listed in the interbank market, should pay an interest rate of between 4.1% and 4.4%, the company announced Tuesday.
The planned rate was one to two percentage points lower than bank loans, which cost 5% to 6%, cutting interest expense by about RMB 18 million a year, company secretary Ye Yumang said.
China Shipping obtained a general mandate to sell up to RMB 3.5 billion of bonds in a shareholders' special general meeting in August last year. Final approval is required from the National Development and Reform Commission.
China Shipping said the bond sale proceeds would be used to fund the purchase of four container vessels with 4,250 teu (20-foot equivalent unit) capacity and eight 8,530-teu ships. It did not disclose the total price and delivery dates.
Bank of China's Shanghai branch is expected to provide guarantee for the bonds and China Lianhe Credit will assign a rating. The bonds are proposed to be listed in the Mainland interbank bond market after regulatory approval.
The 10-year bond, which will be listed in the interbank market, should pay an interest rate of between 4.1% and 4.4%, the company announced Tuesday.
The planned rate was one to two percentage points lower than bank loans, which cost 5% to 6%, cutting interest expense by about RMB 18 million a year, company secretary Ye Yumang said.
China Shipping obtained a general mandate to sell up to RMB 3.5 billion of bonds in a shareholders' special general meeting in August last year. Final approval is required from the National Development and Reform Commission.
China Shipping said the bond sale proceeds would be used to fund the purchase of four container vessels with 4,250 teu (20-foot equivalent unit) capacity and eight 8,530-teu ships. It did not disclose the total price and delivery dates.
Bank of China's Shanghai branch is expected to provide guarantee for the bonds and China Lianhe Credit will assign a rating. The bonds are proposed to be listed in the Mainland interbank bond market after regulatory approval.