State-owned Singaporean shipping line, Neptune Orient Lines is getting a US$160 million loan from local bank Development Bank of Singapore (DBS).

The bank is an associate member of Temasek Holdings, which also holds a controlling share interest in NOL.

NOL said the company's vessels would be mortgaged to DBS as security for the loan.

No details were given on the maturity for the loan or interest payments.

The loan comes after successful rights issues totalling US$960 million NOL raised earlier this year.

Majority of the proceeds from the issue was used to pay off debts owed by world's the seventh largest container liner operator.

NOL reported losses of US$530 million for the first nine months of 2009 but its container volumes dramatically improved in the middle of October.

Jaya Prakash