With the news that TPG Capital and Canada Pension Plan Investment Board (CPPIB) have raised $500m for a 17% stake in MISA Investments Limited, the parent company of Viking Cruises, the company are now looking to a brighter future ahead with emphasis of expanding their cruise operations to more markets around the world, including the ever increasingly lucrative China market.
A spokesman for Viking issued a statement which shows what sort of plans the cruise line hope to follow with the recent investment program.
“The investment of these funds will not affect Viking’s day-to-day operations; rather, the partnership will support Viking’s long-term growth plan and will allow us to expand into new markets around the world, Viking is currently developing a selection of cruise products for the Chinese tourism market. We believe this is the right decision for the business, as China is the world’s biggest outbound tourism market and the number of Chinese outbound tourists is expected by industry experts to increase rapidly in the coming years.”
Viking have already began planning operations for a Chinese market and will feature this Autumn when cruises on their river ships on the Rhine will begin. Chinese guests will be able to sail between Amsterdam and Basel on ships which will have Mandarin as their primary language.
Whilst the investment represents a positive step, the outlook for the company and its share bonds remain stable, according to Moodys Investors Service, even though they downgraded the long term ratings of Viking Cruises bonds in May.