JAPAN'S Mitsubishi Corp and six banks will provide loans amounting to US$320 million to finance the building of seven 3,400-teu ships ordered by China Ocean Shipping Co (Cosco) in November.
The banks are Sanwa Bank, Bank of Tokyo, Mitsubishi Trust & Banking Corp, Tokai Bank, Sakura Bank and Norinchukin Bank.
The $324 million newbuilding order was placed with Samsung Heavy Industries of South Korea in November, for deliveries in 1997 and 1998.
It was reported that the newbuildings would be partly financed by the HK$1.5 billion Cosco would get from its 50 per cent stake sale in a Hong Kong container terminal to subsidiary Florens Group.
In the past 13 months Cosco ordered 21 vessels through Cosco (Hong Kong) Groups, its Hong Kong flagship. These include six ships of 5,250 teu from Japanese yards for US$480 million, and four feeder vessels of 764 teu and four of 836 teu from Chinese yards.
Cao Zang, executive director and vice-president of Cosco (Hong Kong) Group, said orders for two more vessels were likely to be placed soon.
