China Shipping provides $300m loan to CSCL HK

CSCL HK, wholly-owned by Hong Kong-listed CSCL, will receive the loan amount under two parts, with the first $200m to be repaid in three years and the remaining $100m to be repaid in one year.

“The loan will be mainly used for replenishment of CSCL HK’s liquidity and increase its cash flow, which in turn will serve to enhance its ability to continue as a going concern,” CSCL said in a statement.

The statement added that the lending interest rate is lower than the US dollar lending rates in international financial markets and is lower than the benchmark rate published by the People’s Bank of China in the corresponding period.

CSCL has reported a 2013 full year net loss of RMB2.61bn ($420.36m) as against a profit of RMB524.92m in 2012.