Cosco Shipping Development has announced that its financial leasing unit Cosco Shipping Leasing has applied for loans totalling RMB1.61bn ($229m) from three banks, and the company will provide guarantees for the loans.
The company has applied for a RMB1bn loan from Jiangsu International Trust, RMB112.5m from Zheshang Bank and another RMB500m from China Merchants Bank.
The loans will be used to support the company’s business development and repay debt.
In October, Cosco Shipping Leasing approved a plan to set up a subsidiary in Tianjian Dongjiang Bonded Area in order to further expand its ship finance business. The company currently owns a fleet of 17 vessels.
The company was reported to have acquired eight supramax bulk carriers from Singapore-based bulker owner Dasin Holdings in November under a sale and leaseback arrangement.