China COSCO Holdings today confirmed to the Hong Kong Stock Exchange that it has ordered up to 20 4,250-TEU containerships from Chinese shipbuilders Jiangsu Tianyuan and Jiangsu New Yangzi.

The contracts for 16 confirmed vessels with four options, were signed on Dec. 28, and are worth about $1.08 billion.

Seven of the confirmed vessels are expected to be delivered during the second half of 2011. The remaining nine confirmed ships are expected the first half of 2012.

COSCO said it will arrange bank loans to fund 80 percent of the purchases with the remaining money coming from internal resources of COSCO Container Lines.