Cosco raises $1.94bn to fund 20 boxships

Cosco raises $1.94bn to fund 20 boxships

Cosco Shipping Holdings has approved a proposed non-public issuance of 2.43bn new shares to 10 specific subscribers to raise up to RMB12.9bn ($1.94bn). China Cosco Shipping Corporation will subscribe to 50% of the new shares.

The net proceeds will be used to fund 20 containerships under construction at domestic yards. The five 13,800 teu vessels, four 14,568 teu vessels, five 20,119 teu vessels and six 21,237 teu vessels are expected to be delivered in 2018 and 2019.

If proceeds are not sufficient to satisfy the investment needs of the newbuilding projects, the difference will be covered by Cosco through self-financing.

Cosco said the new mega ships will help the company expand the scale of its business, and the layout of shipping capacity and support for terminals along the routes under One Belt One Road initiative will also strengthened.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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