Chinese container lessor Seaco has raised US$600 million after issuing asset-backed securities to international financial institutions.
[s2If is_user_logged_in()]Its immediate parent, Bohai Leasing, a subsidiary of state-owned HNA Group, which also owns Hainan Airlines, announced on 18 March that proceeds will go towards ordering new containers and business development.
Bohai Leasing said in a filing to the Shenzhen Stock Exchange that the 11-year securities were issued through Global SC Finance VII SRL, a special purpose vehicle owned by Seaco.
Among the securities are US$564.7 million of Class A Notes, with a Standard & Poors rating of A, and an interest rate of 1.86%, as well as US$35.3 million of Class B Notes, with a Standard & Poors rating of BBB+, with an interest rate of 2.76%. Asset-backed securities are comprised of loans that are packaged and sold to investors as securities.
Formerly called GE Seaco, the container lessor was once owned by General Electric, before being acquired by HNA Group in August 2011 for US$1.05 billion. Financial trouble at HNA Group reportedly caused attempts to divest Seaco in 2018, but a buyer could not be found.
However, improving conditions in the container shipping market have enabled Seaco to turn to the capital markets in 2020, raising nearly US$2.72 billion from issuing asset-backed securities.
Bohai Leasing said, “Since the second half of 2020, with the reopening of global economic and trade activities, consumer spending overseas has increased and container demand has rebounded significantly.”
At the end of 2020, Seaco owned approximately 3.8 million TEU, with an average occupancy rate of over 98%, the highest level in its history.
Martina Li
Asia Correspondent
[/s2If]
[s2If !is_user_logged_in()]Please login or register to read the rest of the story[/s2If]
