CIMC, the world's biggest container maker, hopes to raise $600 million in 3-year notes on the US debt market to restructure its own debt load.
Biggest box maker seeks US$600 million on US debt market to ease its debt
SHENZHEN'S China International Marine Containers (CIMC), the world's biggest container maker, hopes to raise $600 million in 3-year notes on the US debt market to restructure its own debt load.
In a notice posted on the website of the Hong Kong Stock Exchange, CIMC said its Hong Kong subsidiary has signed an agreement with Bank of China and Bank of America Merrill Lynch to facilitate the transaction.
Separately, Hong Kong-based Singamas Container Holdings, the world's second biggest container maker, has been doing badly on the Hong Kong exchange, reports Bloomberg
Singamas expects 2012 net income to decline from the US$138.6 million posted a year earlier as sales and gross profit margin have dropped because of the economic downturn in Europe and the US, the company said in a December 28 filing. Market weakness may continue until the second half of next year, it said in the filing.
"Singamas has been hit by a waning demand for containers," said Lawrence Li, a Shanghai-based analyst at UOB-Kay Hian Holdings Ltd.
In November, Reuters reported CIMC de-listed from what it called "China's ailing B-share market" to prepare for a re-listing in Hong Kong, which was accomplished on December 19.
With 40 per cent of market share in the international container business and 56 per cent of the dry marine container market, CIMC has been the world's biggest box maker since 1996, says Wikipedia, adding that it has 12 factories across China.
