Helsinki: Finnish firm Containerships has successfully placed an EUR45m senior secured bond loan. The bonds, maturing on 2 April 2019, will bear a floating coupon of 3 months Euribor + 7.50% paid quarterly and the terms include no maintenance covenants or amortizations.
The proceeds from the bond issue will partially finance the acquisition of two new container vessels enabling Containerships to extend its investment programme up to six identical LNG-fuelled vessels. The new vessels will be constructed at Yangzhou Guoyu Shipyard in China and the purchase is well in line with Containerships’ previously announced strategy to adapt its fleet and operations to new legislation on sulphur emissions and to become the first shortsea container operator in Europe to run ships on LNG. Listing of the bonds on NASDAQ OMX Helsinki will take place within one year after settlement.
“We are pleased to secure financing for this important investment programme for Containerships. It is important to emphasise that in order to meet future regulations, most competitors on the market will use alternative solutions, such as marine gas oil with decreased sulphur content. These options do not require the same level of investment as the solution Containerships has chosen. Our strategy is to stay well ahead of the curve when it comes to environmental regulations, and to be a pioneer in eco-friendly shipping while continuing to offer customers the best value for money. By securing the financing for the purchase of two new LNG-driven vessels, Containerships may now materialize this strategy,” the company said in a release.
“This is a huge leap for a family owned company. Instead of calling the new environmental regulation an obligation, we see it as a big opportunity for sustainable growth” the firm added.
Pareto Securities acted as sole bookrunner for the bond issue.