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.