Coscon eyes US$466m to finance new vessels

Cosco Container Lines (Coscon) is looking to raise a US$466.5 million ship financing loan, according to banking sources.

The proceeds will make up 60 per cent of the US$777.5 million needed for four 5,100-teu (20-foot equivalent unit) container ships and four 10,000-teu ships. The vessels will be delivered between July next year and August 2008.

Coscon is offering an all-in fee of 55.3 basis points above the London interbank offered rate (Libor) for banks willing to commit at least US$65 million. The price is equal to an interest margin of 51.5 basis points above the reference rate.

Banks which choose to become involved in a take-and-hold arrangement by committing US$50 million will enjoy an all-in fee of 54.9 basis points.

The interest being offered for the 10-year loan is lower than that offered last year.

According to newsletter Basis Point, the borrower paid an all-in fee of 63-64 basis points for its US$212 million 10-year ship financing in March last year.