CMES raises RMB2bn to fund newbuilds

Beijing: China Merchants Energy Shipping (CMES) has announced that it plans to issue 576m new shares to raise up to RMB2bn capital to fund the construction of five VLCCs and six bulk carriers.

The company will use RMB1.8bn of the raised funds on the VLCC project which requires RMB2.99bn in total and the remaining RMB200m on the bulker project which requires RMB922m in total.

CMES has already invested RMB479m and RMB200m respectively on the two projects.

The five VLCCs have been ordered by CMES at Dalian Shipbuilding Industry Corporation and Shanghai Waigaoqiao Shipbuilding in September this year. CMES ordered the six bulkers at CSSC Chengxi Shipyard in September 2013.

CMES is currently in the middle of a fleet optimization plan. It has scrapped eight old bulk carriers since July 2014. [18/11/14]

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