NOL To Raise $300M

Singapore's Neptune Orient Lines Ltd. launched an issue of seven-year notes totaling $300 million after setting up a $1 billion medium-term note (MTN) program for up to 10 years. The shipping group, which owns container group APL, said in a statement the funds raised would be used for expansion and to refinance existing borrowings. The issue, with a coupon of 4.09 percent per year, is arranged by OCBC Bank, Overseas Union Bank, Societe Generale Asia (Singapore) Ltd and Standard Chartered Bank. "The arrangement not only meets our current requirements, it allows us to access further funds sometime in the future if we choose," said Lim How Teck, NOL's chief financial officer. "We consider this is good timing because interest rates are currently very low. The interest rate of 4.09 percent per annum is excellent especially considering it is over seven years." NOL said it has a right of early redemption at face value from year five for the non-convertible fully underwritten issue targeted at institutional investors in Singapore. - (Reuters)