Ningbo Port has announced a plan to raise RMB11.2bn ($1.62bn) through the issuing of new shares to its controlling shareholder Ningbo Zhoushan Port Group and new investor Shanghai International Port Group (SIPG).
The proceeds from the fund raising will be used for terminal construction, berth conversion, asset acquisition, debt repayment and general working capital.
According to Ningbo Port, the fund raising plan will bring in SIPG as a strategic investor in an response to the central government’s call to enhance cooperation among ports in the Yangtze River Delta region.
SIPG will spend RMB3.7bn to acquire around 5 percent of Ningbo Port’s shares.
Ningbo Port will use RMB4.6bn of the proceeds to support the construction of container terminal at Meishan Port area and another RMB1.04bn for the development of iron ore terminal at the Chuanshan port area.
Ningbo Zhoushan Port has been the number one port in the world in terms of cargo throughput in the past decade, handling 1.12bn tons of cargo in the year of 2019. The port also completed container throughput of 27.53 teu during the same period, ranking it third in the world.