MISC To Raise $600M To Buy Ships

Malaysia International Shipping Corp (MISC) will raise about $600 million in global bonds by mid-2001 to partly fund the purchase of four ships worth some $1 billion. "We are first going to the market to be rated by international agencies like Standard & Poor's and Moody's and then will look at issuing bonds," MISC managing director Mohd Ali Yasin said. He said the credit ratings and the bond issue, the first by MISC globally, would be completed by middle of next year. MISC, one of the world's largest liquified natural gas (LNG) tanker operators, has placed orders for four LNG ships costing about $1 billion for delivery over the next five years. It also has an option to place firm orders for another two before the end of this year. "We are going for 60/40 debt to equity ratio for the funds needed to buy the LNG ships," Mohd Ali said. "And for the borrowings, we will look for the cheapest source."