China Shipping Container Line borrows US$430 million to build liquidity

STATE-OWNED China Shipping Container Lines (CSCL) has announced several loans totalling of US$430 million to improve working capital.

Some $200 million will come from its parent conglomerate, China Shipping Group (CSG) and $100 million from CSCL HK, its wholly-owned Hong Kong subsidiary, according to an exchange filing.

"The loan will be mainly used for replenishment of CSCL HK's liquidity and increase its cash flow, which in turn will serve to enhance its ability to continue as a going concern," said the filing.

Separately, CSCL said it plans to borrow $130 million from the Australia and New Zealand Banking Group (ANZ) the third largest bank in Australia.