China Shipping to issue bonds to pay for new ships

China Shipping to issue bonds to pay for new ships    China Shipping Container Lines said on Monday that it would issue bonds worth RMB1.8 billion ($232 million) to fund the construction in China of 12 new containerships with an aggregate capacity of more than 85,000 TEUs.
   CSCL has signed a letter of intent with China Shipping Industry Co. Ltd., its wholly owned shipbuilding subsidiary, to build eight 8,530-TEU vessels and four of 4,250 TEUs. The design, specifications and delivery dates will be finalized before the end of the year.
   “The board believes the proposed issue of the bonds will be the most appropriate arrangement for the company, as it will allow the company to improve its asset liability structure, reduce its existing costs of financing, broaden its financing channels and improve its capital markets financing structure,” China Shipping said in a statement.
   The bonds are proposed to be listed in the Mainland China interbank bond market after obtaining the approvals of the relevant regulatory authorities.