New North EuropeNorth AfricaMediterranean (NET2) Service
Selling USD 2 Bn of Shares to Fund Boxships
China’s COSCO Shipping Lines has announced the launch of new NET2 service jointly with partners Yangming and Evergreen to strengthen the direct connection of North Europe/North Africa/East Med region.
- Port Rotation: Rotterdam – Felixstowe – Hamburg – Antwerp – Casablanca – Piraeus – El Dekheila – Haifa – Mersin – Piraeus – Casablanca – Rotterdam.
- Vessel Deployment: Total 5 x 4250 type Vessels. (COSCO SHIPPING 3 vessels ,Yangming 1 vessel and Evergreen 1 vessel.)
- Commencement: First voyage (MV HOBBY HUNTER) from Rotterdam on 26th November.
New NET2 service highlights:
- New direct connections for North Europe/North Africa/East Med.
- Effective T/S via Rotterdam and Hamburg to/from Baltic/Scandinavia/Ireland etc.
- Plentiful coverage via Piraeus Hub to/from Black Sea/Adriatic Sea/North Turkey etc.
As the 2nd service in NET series, COSCO SHIPPING Lines has stated that it will enhance their network and maintain the high-standard service as always.
COSCO Shipping Holdings has unveiled its intentions to raise up to CNY 12.9 billion (USD 1.9 billion) in an effort to finance the construction of new containerships.
According to the company’s stock exchange filing, the net proceeds of the sale would be used to fund the building of 20 boxships, six of which would have a capacity of over 21,200 TEU.
Four of the remaining vessels from the batch would have a capacity of over 14,500 TEU, five would be able to carry 13,800 TEU and the final five would have a capacity of over 20,100 TEU.
The move would see the company sell over 2 billion of its Series A shares through a private placement.
As part of the issuance, the company and COSCO Shipping entered into a subscription agreement pursuant to which COSCO Shipping has conditionally agreed to subscribe for, and the company has conditionally agreed to issue, 50% of the total number of Shares A to be issued under the placement.
31 October 2017