Greater China

Cosco secures $1.75bn bank loan for shipbuilding programme

Shanghai: Cosco has taken out a RMB10.9bn ($1.75bn) loan from the Export-Import Bank of China to finance its newbuilding programme, according Chinese press reports.

Last week, Cosco confirmed plans to raise RMB1.7bn ($273.9m) through the issuance of A shares to fund two semi-submersible vessels, three multi-purpose vessels and four new 28,000-dwt heavylift vessels. RMB800m of the sum will be used to repay loans and replenish working capital.

The four heavylift vessels are costing RMB290m each and will be built by Hudong-Zhonghua Shipbuilding and Shanghai Shipyard for delivery from December 2016. Another two options are expected to be confirmed by March 15.

Cosco has a total of 30 new vessels in its orderbook for its more mainstream shipping segments.

Eleven Handysize bulk carriers are being built in China, of which 10 will be delivered in 2016 and one in 2017. Shanhaiguan Shipbuilding Heavy Industry, Qinghuangdao, is building two 38,500-dwt units and five 38,300-dwt units; the Chengxi shipyard at Jiangyin is building four 38,800-dwt vessels.

Chengxi is also working on four 63,800-dwt ultramax bulk carriers for 2016-17 delivery; a further such vessel is being built at the Ast de Huelva yard, Spain.

The Shanghai Jiangnan Changxing shipyard is building five 9,403-teu containerships, three of which will arrive in 2016 and two in 2017; and five 14,000-teu boxships for 2017-18 delivery.

Finally, five VLCCs are being built at the Dalian shipyard, which comprise four 308,000-dwt vessels for 2016 delivery, and one 320,000-dwt ship that will hit the water later this year.

Cosco disposed of 17 vessels during the last four months of 2014, made up of thirteen bulk carriers and four container vessels. The 17 vessels had aggregate tonnage of 919,853 dwt. [16/01/15]



Coscol raises RMB1.7bn for fleet expansion


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