Seaspan Corporation has become the first shipowner and vessel operator to raise money thru China’s fast-growing Panda bond market, marking a key milestone in its financing strategy.
Based in Singapore, the company successfully placed an RMB1.5 billion (about US$220 million) Panda bond issuance in the Chinese domestic market, providing a new source of unsecured funding to underpin its long-term growth.
The bond has a coupon rate of 2.5% per annum and matures in 3 years. Investor appetite was particularly strong, with the deal being oversubscribed 2.3x by Chinese onshore investors and international institutional investors.
“The successful transaction expands Seaspan’s access to funding sources, providing access to China’s domestic capital markets and reducing reliance on traditional sources of financing,” Seaspan said.
The strong investor response shows confidence in the company’s financial strength and long-term strategy,” said Andreas Brauch, chief financial officer of Seaspan.
“The issuance of the bonds reflects the confidence investors have in Seaspan’s credit quality, business model, financial performance and long-term expansion outlook,” he said.
Brauch said that expanding into China’s capital markets would give the company an ability to diversify its funding sources and tap into more cost-efficient capital, which would support its long-term goal of continuing to invest in one of the world’s largest and most modern fleets of container ships.
The successful issuance of Panda bonds is another step in Seaspan’s strategy to improve its financial flexibility, while also supporting customers with the continued expansion and modernization of its fleet.
