China Shipping to issue US$250m bond
(Xinhua)
Updated: 2004-12-01 00:06

China Shipping (Group) Company, one of the largest ocean transport corporations in the nation, announced here Wednesday that it will issue 2 billion yuan (about 250 million US dollars) bond beginning Thursday to finance its ship purchases.

The bond project, already approved by the State Development and Reform Commission, will raise funds to buy 26 ships needed for the future business development, said the company officials.

All the 26 ships will be put into operation by the end of 2006, which will further enhance the company's competitiveness, according to the officials.

The bond will be issued from Dec. 2 to 15 and, afterwards, it will be listed in the Shanghai Stock Exchange.

Official sources noted that that 10-year-term bond has a flexible annual interest rate, floating upward about 2.55 percent from the fixed official bank rate. The bond has a guaranteed minimum rate of 5.2 percent a year to protect the returns of investors.

Founded in 1997, the Shanghai-based China Shipping will see annual revenue of 48 billion yuan (5.8 billion US dollars) with pre-tax profits of 8.5 billion yuan (some one billion US dollars). It has established more than 30 overseas subsidiaries and its total assets is expected to hit 60 billion yuan (7.2 billion US dollars) at the end of 2004.

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