China Cosco is going through tough times. In 2011, China’s biggest listed shipping company made a loss of Rmb10.45 $1.68 billon as dry bulk and container shipping volumes fell, and it is set to make a loss again this year.
Its share price has collapsed. The company needs money, but international lenders demand a high price. Fortunately, one of China’s state-owned banks could give a helping hand. Late on Monday, China Cosco raised $1 billion with a 10-year bond but backed by Bank of China.
The issuing entity was a special purpose vehicle called Cosco Finance 2011. China Cosco Holdings provides a keepwell deed and investors...
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