China’s biggest shipyard raises $718 million to ease impact of coronavirus
China State Shipbuilding Corp. has announced that it raised five billion yuan by selling so-called coronavirus bonds to replenish labor-capital facilities heavily depleted by coronavirus outbreak.
The company is the latest state-owned enterprise to increase local investors' short-term debt to help with the costs of restarting business.
The lending of the firm will mature in 270 days with a set yield of 2.2%.
The National Shipbuilding Industry's China Association said last month that it is likely to push back more than 200 ship deliveries under reconstruction or retrofitting.
China is accepted as the biggest shipbuilder in the world with over 960 vessels scheduled to be launched this year.
“The money will be used to replenish the working capital of group firms who need the funds to help contain the virus outbreak,” China State Shipbuilding stated.
Maritime Business World