CSSC (Hong Kong) Shipping Company, a shipowning subsidiary of China State Shipbuilding Corporation (CSSC), has agreed to jointly provide USD10 million in finance for Hong Kong-listed Yuanheng Gas, a LNG supplier and trader.
The company will participate in the subscription for USD10 million in convertible bond through Singapore-based Kylin Offshore Engineering, which is 70%-owned by CSSC (Hong Kong) Shipping Company and 30%-owned by Titan Oil, a stock filing of Yuanheng Gas said. The convertible bond will bear an interest rate of 6% per annum.
Kylin Offshore Engineering is principally engaged in investing in the offshore support vessel and drilling rig sectors, offering additional resources for ship financing and shipbuilding via CSSC, as well as managing and operating offshore units.
The issuance of the convertible bond will enable the company to build a strategic partnership with the industry leading state-owned company and to develop a comprehensive co-operation in the building, transportation, and leasing of clean energy-fuelled vessels to support the group’s future LNG business, Yuanheng Gas said.