Japanese shipping line Nippon Yusen plans to raise JPY142bn ($1.58bn) through share sales to finance new vessels.

According to a statement made to Tokyo Stock Exchange, the company plans to issue 427 million new shares with the option of selling a further 33 million.

The sale is expected to boost the shipping line’s outstanding shares by nearly 35%.

Nippon said it will spend JPY830bn on ships in the next three years ending March 2014, after increasing its loss forecast for the year from JPY5bn to JPY27bn.

In October, the company announced it would halve its fleet-spending plans due to non-availability of bank loans.

The shipping line posted a JPY10.4bn loss in the three months ending September, its third straight unprofitable quarter.