Sinotrans Ltd, the Hong Kong-listed unit of China's mainland state-owned shipping group Sinotrans & CSC group, aims to build working capital through a bond sale to raise CNY2 billion (US$328.2 million).
It will issue three-year, fixed rate bonds in Shanghai this week with sales completed within a few days, according to an exchange filing. This aims to create funds, reduce pressure "in maintaining cash flows and support stable operations," said a company statement.
The logistics arm, operating intra-Asia and domestic container shipping, launched its bond sales as the first tranche of its CNY40 billion bond programme, approved by shareholders more than six months ago.
London's Lloyd's List said Sinotrans increased its profit 9.2 per cent year on year to CNY711.1 million, adding that the company aims to purchase assets from its parent company Sinontrans & CSC and in turn become its logistics arm, according to the Shipping Gazette.