China’s COSCO Shipping Development Co Ltd 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), reports China Daily.
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.
In July 2016, China Shipping Container Lines (CSCL) proposed to change its name to Cosco Shipping Development Co, in line with the company’s future business strategy and as a group member of China Cosco Shipping Corpo
The company is expected to transform from a container liner operator into an integrated financial services platform with leasing businesses such as a vessel leasing, container leasing and non-shipping leasing as core and shipping financing as feature.