COSCO SHIPPING Development Co., Ltd. — Capital/Financing Update 2018

Dec 7, 2018

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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中遠海運發展股份有限公司 COSCO SHIPPING Development Co., Ltd.*

(A joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 02866)

INSIDE INFORMATION

PROPOSED ISSUANCE OF ASSET-BACKED SECURITIES BY COSCO SHIPPING LEASING CO., LTD.

This announcement is made by COSCO SHIPPING Development Co., Ltd. (the “ Company ”) pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors (the “ Board ”) of the Company is pleased to announce that COSCO SHIPPING Leasing Co., Ltd.[#] (中遠海運租賃有限公司) (“ COSCO SHIPPING Leasing ”), a company established under the laws of the People’s Republic of China (the “ PRC ”) with limited liability and a wholly-owned subsidiary of the Company, proposes to issue asset-backed securities (the “ Asset-backed Securities ”) in the aggregate principal amount of not more than RMB2,455 million (the “ Proposed Issuance ”) on the Shanghai Stock Exchange.

It is proposed that the Asset-backed Securities will be divided into (i) the senior classes (which will be further divided into “Senior A-1 Class”, “Senior A-2 Class” and “Senior A-3 Class”) in the principal amount of not more than RMB2,318 million, which will account for approximately 94.42% of the Proposed Issuance and will be issued to qualified investors in the PRC, and (ii) the subordinated class in the principal amount of not more than RMB137 million, which will account for approximately 5.58% of the Proposed Issuance and will be subscribed by COSCO SHIPPING Leasing.

The senior classes of the Asset-backed Securities will have a term of not more than four years and will have a fixed coupon rate to be determined with reference to the market conditions at the time of the issuance. COSCO SHIPPING Leasing has the option to adjust the expected yield of the outstanding Senior A-3 Class of the Asset-backed Securities at the end of the third year of the term. The holders of the Senior A-3 Class of the Asset-backed Securities have the option to sell back the relevant securities pursuant to the terms thereof and in the event that such option is exercised, COSCO SHIPPING Leasing shall be obliged to pay the price in respect of such sale back. The subordinated class of the Asset-backed Securities will have a term of not more than five years and will not have a fixed coupon rate.

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The Asset-backed Securities will be backed by the creditor’s rights and collateral interests of COSCO SHIPPING Leasing pursuant to certain finance leases.

The proceeds from the Proposed Issuance will be used for the repayment of loans of COSCO SHIPPING Leasing and project investments.

The completion of the Proposed Issuance is subject to, among other things, the obtaining of the no objection letter to be issued by the Shanghai Stock Exchange. Accordingly, the Proposed Issuance may or may not proceed. Shareholders and potential investors of the Company should exercise caution when dealing in the securities of the Company.

By order of the Board COSCO SHIPPING Development Co., Ltd. Yu Zhen Company Secretary

Shanghai, the People’s Republic of China 7 December 2018

As at the date of this announcement, the Board comprises Ms. Sun Yueying, Mr. Wang Daxiong, Mr. Liu Chong and Mr. Xu Hui, being executive directors, Mr. Feng Boming, Mr. Huang Jian and Mr. Liang Yanfeng, being non-executive directors, and Mr. Cai Hongping, Ms. Hai Chi Yuet, Mr. Graeme Jack, Mr. Lu Jianzhong, Mr. Gu Xu and Ms. Zhang Weihua, being independent non-executive directors.

• The Company is a registered non-Hong Kong company as defined under the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) and it is registered under its Chinese name and under the English name “COSCO SHIPPING Development Co., Ltd.”.

• For identification purpose only.

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