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MOL issues latest set of unsecured bonds

MOL issues latest set of unsecured bonds

Tokyo:  Japanese shipping giant Mitsui O.S.K. Lines has completed the issuance and payment of its 13th series of unsecured bonds worth 20 billion yen on December  17.  This issue, which will see the bonds mature in 7 years (2016), comes in the footsteps of 50 billion yen in 5 and 10-year bonds issued in May this year. The money raised is to be "allocated for refunding and repaying loans and commercial paper (CP) used for vessel investment."

The new bonds are expected to be the last set of funds raised through a public equity offering in the near-term.  Instead, as is in line with MOL's relatively conservative fund raising policy, the company will fund its operations and fleet expansion through bank loans or debt issuance, MOL's traditional methods of financing.

"With the increase in marine cargo trade, MOL has taken a proactive and appropriate fleet investment strategy which has resulted in enhanced profitability and financial strength," the company said in a statement. "These measures have enabled us to achieve the financial soundness necessary to operate our business even in the midst of the economic recession caused by the global financial crisis."  [18/12/09]