Cosco Shipping to build 14 vessels in $3.08bn deal

COSCO Shipping Holdings (HKEX: 1919) announced it will build fourteen 18,500 TEU-class methanol dual-fuel powered container vessels via its indirect non-wholly owned subsidiary, OOIL. The total consideration is US$3.08 billion, or US$220 million per vessel. The company will engage Nantong and Dalian as builders. Delivery of the vessels is expected between the third quarter of 2028 and the third quarter of 2029. The shipbuilding transaction constitutes a disclosable and connected transaction as defined by the Hong Kong Listing Rules, and will be subject to approval by independent shareholders. COSCO Shipping anticipates using a combination of external financing and internal resources to fund the construction.