China shipping to sell convertible bonds to buy 42 ships
(Shanghai Daily)Updated: 2007-06-28 09:17
China Shipping Development Co said it plans to start
selling 2 billion yuan (US$262 million) of bonds convertible into shares on July
2 and use the funds raised to buy 42 dry-bulk cargo ships.
The five-year, yuan-currency bonds will have an annual yield of as much as 2.7 percent and a conversion price of 25.31 yuan, Shanghai-based China Shipping, the nation's biggest oil carrier, said in a statement to the city's stock exchange today, Bloomberg reported.
The company first announced the bond sale in November, saying it would use the proceeds to buy the 42 ships valued at 2.47 billion yuan from its parent company, boosting its fleet of dry-bulk cargo vessels to 134 from 92.
China Shipping's Hong Kong-traded stock has more than tripled in the past year, compared with an 85 percent gain in the Hang Seng China Enterprises Index. The stock fell 0.9 percent to HK$17.46 yesterday.
The company's Shanghai-listed shares rose 1.7 percent to 22.39 yuan. They have more than tripled in the past 12 months.
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