The shipping operator MOL will receive 987 million USD hybrid loan for investment in LNG carriers and offshore businesses, as well as enhancing the company’s earnings base to boost its competitiveness. The loan, which is mixture of a fixed rate and an adjustable rate, matures in October 2076, but the principal can be paid earlier after 5 years from the execution date. Mitsui O.S.K. Lines (MOL) aims to invest into fleet development and reducing the operational expenses, by purchasing modern vessels and developing market share in offshore business. The shipping operator is restructuring under the pressure of container shipping market downturn and decreasing freight rates in recent months.
“MOL decided to pursue fund procurement through the Hybrid Loan that allows it to balance growth strategies on one hand and financial health on the other”, said the official statement of the container operator Mitsui O.S.K. Lines (MOL). “MOL has implemented business structural reforms mainly in dry bulkers and containerships. It has focused on making a swift recovery to a growth trajectory, enhancement of its earnings base targeting the next midterm management plan, and restructuring of its financial base to ensure stable, sustainable growth”, adds the statement.
The container carrier MOL tries to strengthen its financial position, avoiding equity dilution, which happens when funds are raised through a new stock issue. The company already, reduced its profit’s forecast for 2016 from 197.4 million USD to 148 million USD.
The shipping operator Mitsui O.S.K. Lines (MOL) is a Japanese transport company, which is among the largest in the world. It operates large fleet of container ships, LNG carriers, car carriers, tankers, bulk carriers and ferries.