Seaspan Corporation, led by Bing Chen, has become the first international shipowner and operator to access China's domestic Panda Bond market, raising RMB 1.5 billion ($209 million) through a three-year private placement.

The bond was issued with a coupon rate of 2.5% and drew robust demand from both Chinese onshore and international investors, with the orderbook oversubscribed 2.3 times.

The transaction provides Seaspan with a new avenue of unsecured funding and further diversifies its capital base as the company continues to expand and renew one of the world's largest containership fleets. For a vessel lessor whose business model depends on locking in long-term charters with liner operators while managing its own financing costs, access to a deeply liquid RMB funding pool at a competitive coupon meaningfully broadens the toolkit beyond the dollar and euro debt markets that have traditionally dominated maritime finance.

"The issuance demonstrates the confidence that investors have in Seaspan's credit quality, business model, strong financial profile and sustainable growth strategy," said chief financial officer Andreas Brauch.

Brauch added that access to China's domestic capital markets would help lower Seaspan's funding costs and support the company's long-term growth plans.

Panda Bonds are renminbi-denominated debt securities issued in China by non-Chinese entities. The market has grown in recent years as international companies seek to tap liquidity among Chinese investors and diversify funding sources away from traditional dollar and euro debt markets. China's onshore bond market is one of the largest in the world by outstanding volume, and regulators have gradually streamlined registration and disclosure requirements for foreign issuers through frameworks such as the People's Bank of China's Panda Bond guidelines.

For Seaspan, the issuance deepens financial ties with a market where the company already maintains extensive relationships spanning shipbuilding, financing, chartering, and maritime services. Seaspan has been a major customer of Chinese shipyards and financiers during its latest expansion cycle, having even paid in local currency for some of its newbuild vessels. China currently accounts for the largest share of global commercial shipbuilding output by gross tonnage, making R-denominated cash flows increasingly relevant across the maritime supply chain.

As of the end of June, Seaspan's operating fleet and newbuilding pipeline stood at 247 vessels, with a total capacity of approximately 2.5 million TEU on a fully delivered basis. That figure includes four pure car and truck carriers, five very large ethane carriers, and four open-hatch gantry crane vessels, reflecting Seaspan's recent strategic move beyond its traditional containership leasing business.

The milestone may also draw attention from other shipping companies evaluating onshore RMB financing, particularly those with existing commercial exposure to Chinese shipyards, charterers, or trade lanes.

Source: Splash247