COSCO makes move to raise $1.79b capital

COSCO Shipping Development Co Ltd on Tuesday night announced a proposed nonpublic issuance of about 3.28 billion shares to specific investors, including its parent company, to raise up to 12 billion yuan ($1.79 billion).

COSCO Shipping Development will become a financing platform of its parent company - China Cosco Shipping Corp, the country's largest shipping company, according to its public statement.

The company will use 6 billion yuan and 2.4 billion yuan from the proceeds for the capital injection into two of its subsidiaries, COSCO Shipping Leasing Co Ltd and Florens International respectively, while it will also use 1.8 billion yuan for the redemption of maturing corporate bonds and 1.8 billion yuan to refill the working capital of the company.