China Shipping Container Lines (CSCL) has announced a proposed non-public issuance of about 3.28bn shares to specific investors to raise up to RMB12bn ($1.78bn).
CSCL will soon change its name to Cosco Shipping Development and become the financing platform of China Cosco Shipping Corporation.
CSCL will use RMB6bn and RMB2.4bn from the proceeds for the capital injection into two of its subsidiaries, Cosco Shipping Leasing and Florens International, while it will also use RMB1.8bn for the redemption of maturing corporate bonds and RMB1.8bn to replenish the working capital of the company.
The company said Cosco Shipping Leasing plans to invest RMB13.8bn in total into financial leasing assets from 2017 to 2019.
CSCL believes that the new share issuance is conducive to the sustainable development of the company’s business and would lay a strong foundation for the company’s transformation from a container liner operator into an integrated financial service platform.