ESL Shipping, part of Finnish conglomerate Aspo, has attracted a new investor to support its ambition of offering fossil-free dry bulk shipping.
The Helsinki-based infrastructure-opportunistic fund OP Finland Infrastructure has agreed to invest €30m against an issue of new shares in ESL with a pre-money equity valuation of €165.
This corresponds to a 15.38% ownership stake and implies an enterprise value of €300m in ESL, Aspo said, adding that it expects the deal to close in the first quarter next year.
ESL operates in the Baltic Sea region and together with its Swedish subsidiary AtoB@C Shipping has a fleet of around 40 bulkers ranging from 4,000 to 56,000 dwt.
AtoB@C has twelve 5,350 dwt battery hybrid coasters on order in at the Indian shipyard Chowgule & Company, with the first ship expected to enter service in the fourth quarter of 2023.
In 2020, ESL adopted renewable liquefied biogas (LBG) to fuel one of its ships for the first time and last year became the world’s first shipping company to start utilising new low-emission Neste Marine 0.1 co-processed marine fuel in its vessels claimed to enable up to 80% reduced greenhouse gas emissions over the life cycle compared to fossil fuels.
The ongoing green transition is expected to boost ESL’s market footprint and offer “significant growth opportunities”. Aspo said the program to speed up its subsidiary’s green transformation would continue through further investments in fleet and technologies enabling fossil-free shipments for the company’s customer base.
“We are delighted to have found a partner in OP Finland Infrastructure LP to support Aspo and ESL Shipping in accelerating the company’s low-carbon growth strategy. We see immense infra-like growth opportunities in ESL Shipping’s market and want the company to play an active part in the ongoing sustainability transformation”, said Rolf Jansson, CEO of Aspo Group.
To further finance ESL’s ambitions, Aspo and its new partner in ESL said they would also look at alternative measures, including launch of a new investment pool of fossil-free ships, sales of the company’s two supramaxes and raising further equity through additional co-investments.
