Hapag-Lloyd Plans Bond Issue

26 September 2010 (Last Updated September 26th, 2010 18:30)

Hapag-Lloyd is planning to raise $500m through bond issues to refinance its debts following improvement in its shipping volumes. Last October the German Government funded a €1.2bn loan guarantee to the container shipping line to protect it against the effects of losses in container s

Hapag-Lloyd is planning to raise $500m through bond issues to refinance its debts following improvement in its shipping volumes.

Last October the German Government funded a €1.2bn loan guarantee to the container shipping line to protect it against the effects of losses in container shipping volume.

Hapag-Lloyd plans to use the proceeds to make redemption and interest payments on existing loans.

The bond sale will be split into two parts: a five-year non-callable bond for three years, and a seven-year non-callable bond for four years, according to financialtimes.com.