NYK joins CMA CGM, Hanjin in debt market - issues US$325 million in bonds

JAPANESE shipping giant NYK Line plans to issue US$325 million of bonds maturing in 2021 with a 1.218 per cent coupon, the carrier`s lowest for a 10-year security since February 2003, according to Bloomberg.

The Japanese carrier will issue a total of $712 million in new debt instruments on September 9, including five-, 10- and 20-year securities. The funds raised are to be used to repay convertible bonds and will take advantage of low rates, according to comments made by a company spokesman.


The shipping line follows other carriers that have also issued bonds recently, including CMA CGM and Hanjin Shipping. Japan`s benchmark 10-year bond yield declined to its lowest level this year in August, cutting rates for corporate issuers such as NYK, on the back of investors switching to more secured fixed-income securities as equity markets dived.