Sainty Marine to raise RMB1.6bn for newbuild projects

Shanghai: Sainty Marine announced that it plans to issue 187m new shares to some specific investors in order to raise RMB1.6b.

According to the announcement, RMB1.3b of the raised funds will be used to finance the construction of sixteen ships including twelve 64,000dwt bulkers ordered by Precious Shipping and four 2,350teu dual-fuel containerships ordered by Universal Marine.

Sainty Marine has received a considerable number of newbuild orders this year which will keep the shipyard busy till 2018. However, the financial situation of the shipyard is not optimistic. Sainty Marine earlier announced that it expected to suffer a net loss of RMB230m in the first half of this year.

The shipyard is finding it more difficult to get bank financing now and the raised funds will improve the company’s liability situation and cash flow. [07/08/14]

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