Singaporean shipping line STX Pan Ocean plans to invest $880m in eight very large ore carriers, to be delivered by 2012.

The company will issue $200m in convertible bonds, with 50% of the proceeds to be used for the purchase of vessels.

The bonds are expected to mature five years from the date of issuance and will carry a coupon between 3% and 5%.

The company’s investment aims to meet the needs of a long-term contract entered with miner Vale International in September.