China Merchants Energy Shipping (CMES) has announced a plan to raise around RMB4.1bn ($610m) via new share offering.
The company will use RMB2.9bn from proceeds to fund newbuilding projects for four VLCCs, two VLOCs and two roro ships, and for the installation of scrubbers on10 VLCCs, while the remaining RMB1.2bn will be used for debt repayment.
The four VLCCs are currently under construction at DSIC with delivery scheduled at the end of this year.
CMES is currently the largest VLCC owner in the world with a fleet of 49 VLCCs, and says the four newbuildings are an important part of its fleet optimisation plan.
The two VLOCs are now on order at Waigaoqiao Shipbuilding and Behai Shipbuilding, and will be deployed for iron ore transport for Vale under a long term COA agreement.
Additionally CMES will order two 3,800 ceu car roro ships for domestic operations.
CMES said the fund raising plan fits the company’s long term development strategy and will enhance the company’s profitability and risk management capability.