Cosco Shipping Development, formerly China Shipping Container Lines (CSCL), has announced that the board of the company has approved a non-public share offering plan to raise RMB12bn ($1.73bn).
After the merger between Cosco Group and China Shipping Group, CSCL has been renamed to Cosco Shipping Development and become a financial leasing unit of the China Cosco Shipping Group.
Cosco Shipping Development will replenish RMB2.4bn ($345m) of the raised funds into its container leasing subsidiary Florens, which will use the fund to acquire container assets.
The company will use RMB6bn to make investments in non-shipping sectors including medical, energy and education. Another RMB1.8bn will be used for the repayment of corporate bond expiring in June 2017.
Cosco Shipping Development said the fund raising will support the sustainable development of the company.