Maersk Raises $704 Million in Bond Issues

A.P. Moller-Maersk raised approximately $704 million in two separate bond issues, just weeks after it first tapped the corporate bond market.

The net proceeds from the issue of the bonds of 4 billion Norwegian crowns will be used for general corporate purposes and repayment of drawings under longer term banking facilities which will be kept as liquidity buffers, the parent of ocean container carrier Maersk Line said.

The issue is only the second time the Copenhagen-based company has raised money on the bond market, following a $1.15 billion issue in October.

The bonds, which were placed by Danske Bank, Nordea and Skandinaviska Enskilda Banken, will be listed on the Luxembourg Stock Exchange.

A.P. Moller-Maersk raised nearly $1.6 billion in early September from the sale of shares, mainly to large institutional investors in the United States, the UK and Scandinavia.

Maersk chief executive Nils Andersen last week said the company will shift spending away from its core ocean container operations toward its oil and gas business, container terminals and retailing.

Contact Bruce Barnard at brucebarnard47@hotmail.com.