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Singapore's NOL in talks to raise $5-7 billion-sources

Sun Jun 22, 2008 10:46pm EDT

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SINGAPORE, June 23 (Reuters) - Singapore's Neptune Orient Lines (NEPS.SI), the world's eighth-biggest container shipping firm, is in talks with banks to take up a $5-7 billion syndicated loan, sources familiar with the situation said.

Talks for a loan come as TUI (TUIGn.DE) Chief Executive Michael Frenzel is touring Asia to market his company's container shipping business Hapag-Lloyd, which the German group has put up for sale and NOL is considered a likely bidder.

A spokesman for NOL declined to comment. The shipping firm is in talks with Singapore's three local banks DBS Group (DBSM.SI), Oversea-Chinese Banking Corp (OCBC.SI) and United Overseas Bank (UOBH.SI) as well as with some foreign banks for the loan, a source close to the situation told Reuters.

A second banker said that "NOL is exploring this."

"Yes, there have been informal talks," he said. "The sum is northwards of $5 billion. The range is $5-7 billion."

The banks expect to receive a formal proposal for the loan this week, he said. (Reporting by Koh Gui Qing and Saeed Azhar; Editing By Ovais Subhani)



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