High-yield bonds are very much in vogue among shipowners circling the Oslo financial markets. In the first nine months of the year shipping companies have raised around NOK16bn, according to data from DNB Markets, which is roughly four times as much as in all of 2016.
Wallenius Wilhelmsen Logistics (WWL) has been among the most recent firms to take advantage of strong high-yield investor interest, raising NOK1bn in unsecured debt on September 28. Arne Blystad’s Songa Bulk has also raised significant funds for fleet growth via the Oslo bond market in recent weeks.
Commenting on the buoyant Oslo finance scene, former head of shipping at DVB and regular Splash finance columnist, Dagfinn Lunde said: “At the moment the Oslo bond market is the most interesting market for shipping and offshore companies who need leverage and have utilised their bank limits.”
Lunde referred to Songa Bulk’s recent prospectus, the details of which he described as “at least as good as a bank loan”.