Seaspan Corporation, led by Bing Chen, became the first international shipowner and operator to gain access to the domestic Chinese panda bonds market. The issuance was carried out as a three-year private placement for 1.5 billion yuan (about USD 209 million).
Key deal terms
- Bond coupon: 2.5%.
- Demand for the issue was strong from both Chinese onshore and international investors.
- The order book was oversubscribed by 2.3 times.
According to CFO Andreas Brauch, the successful placement confirms investors' trust in credit quality, the business model, strong financial metrics, and Seaspan's sustainable growth strategy. He also noted that entering China’s onshore market may reduce borrowing costs and support long-term growth plans.
The transaction provided the company with a new source of unsecured financing and expanded its capital structure amid ongoing expansion and renewal of one of the largest container fleets in the world.
The report also clarifies that panda bonds are, in fact, yuan-denominated debt securities issued in China by foreign issuers. For Seaspan, the deal also strengthened its financial ties with the Chinese market, where the company already has partnerships in shipbuilding, financing, chartering, and marine services.
According to company data, by the end of June its operating fleet and future orderbook amounted to 247 vessels with total capacity of about 2.5 million TEU in a fully delivered configuration. This includes 4 car and Ro-Ro carriers, 5 very large ethane tankers, and 4 open-hatch gantry crane vessels, reflecting business expansion beyond the traditional container-ship leasing model.
GLOAPM.COM