Hong Kong: China Shipping Development is proposing to issue convertible bonds of up to 3.95bn yuan ($598.9m) as it attempts to raise funds for its ongoing vessels construction.
The Hong Kong-listed firm proposed Monday that it expects to utilise approximately 1bn yuan to build three oil tankers of 110,000 dwt each, about 925m yuan to construct eight oil tankers of 48,000 dwt each, about 360.3m yuan to construct two VLCCs of 308,000 dwt each, and about 1.65bn yuan to build six bulk cargo carriers of 76,000 dwt each.
Additional funds required for the vessel constructions will be financed by bank loans, general working capital and/or other resources, the company said.
China Shipping Development believed that the convertible bond issue would allow it to pay a lower interest coupon payment compared to a straight bond issue. The convertible bond issue is also not expected to immediately dilute the company's basic earnings per share, it added.
The convertible bonds have a six-year maturity period.
Meanwhile, the company also announced yesterday the resignation of Mao Shijia as executive director and a member of the board's strategy committee effective 30 January 2011 due to redeployment of human resources. Yan Zhichong, 53, was appointed as executive director to replace Mao. [01/02/11]