NOL to issue US$243.9 million in 10-year bonds at 4.4pc on June 22

SINGAPORE's NOL Group has announced it will issue S$300 million (US$243.9 million) in 10-year bonds bearing interest of 4.4 per cent on June 22 under its US$1.5 billion Euro Medium Term Note Programme. The funds will go mostly to buy new containerships.


Earlier this month, NOL made $1.1 billion loan agreements for twelve 8,400-TEU ships from South Korea's Daewoo Shipbuilding & Marine Engineering in December and two other 10,700-TEU vessels ordered in 2007.


These ships will be delivered in 2013 and 2014 under the operations of APL. NOL chief executive and president Ron Widdows said: "Ship prices have come down, and that gives us an opportunity to retool our asset cost."


The new bonds will be redeemable by NOL in whole or part any time after June 22, 2016, said the company.


This will be the second issue of notes under the programme established by NOL in 2010. Last September, NOL issued S$280 million 4.65 per cent notes due 2020, said NOL, the parent company of container shipping line APL.


DBS Bank Ltd has been appointed as the global coordinator, and DBS Bank Ltd, Standard Chartered Bank and The Hongkong and Shanghai Banking Corporation Limited have been appointed as joint lead managers and bookrunners, said the company statement.
(Source:http://www.schednet.com)