China Cosco

Strong support for China Cosco's $1 billion credit-enhanced bond

China Cosco side-steps its problems by raising $1 billion in the international capital markets, but with some help from Bank of China.
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China Cosco: Falling shipping volumes have hurt business
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<div style="text-align: left;"> China Cosco: Falling shipping volumes have hurt business </div>

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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