Neptune Orient Lines said it would issue S$300 million (US$244 million) in 10-year bonds to help finance the purchase of new container ships for APL.
The Singapore-based company recently ordered 12 new ships, each with capacity of 8,400 20-foot-equivalent units, for APL. The ships, to be delivered in 2013 and 2014, have a reported price of $98 million each.
NOL’s notes will be the second issued under a $1.5 billion program NOL announced in 2010. The notes will pay 4.40 percent interest and be redeemable in 2021. NOL will have the option to redeem all or part of them after 2016.
DBS Bank was appointed as the global coordinator, and DBS. Standard Chartered Bank and Hongkong and Shanghai Banking Corp. were appointed joint lead managers and book-runners for the notes.