- January 29, 2025
- Posted by: Dimitris Touloumis
- Categories: News, Press
No Comments
Successful issue makes owner first private Greek shipping company to raise money in Oslo bond market
29 January 2025
By Nigel Lowry
By Nigel Lowry
CONTSHIPS Logistics has priced its inaugural $100m Nordic bond issue at an
annual interest rate of 9%, becoming the first private Greek shipowner to tap this
market.
The five-year, sustainability-linked bonds will be issued on February 11, at 98% of
the nominal amount.
Feeder containership owner Contships is the third-leading shipping company to
raise money from bonds in the Oslo market this month, following Scorpio
Tankers and John Fredriksen’s SFL Corp, which are both publicly listed tanker
owners.
The Nordic high-yield market appears to be continuing its momentum from last
year, which was a record one that saw 230 bond issues worth almost $20bn.
The shipping and transport sector was a significant component in this activity,
raising NOK34bn ($3bn).
Arctic Securities and Fearnley Securities are acting as joint bookrunners for the
issue, with Clarksons Securities earning a co-manager credit.
The terms include a sustainability target of a 2% reduction in the fleet’s efficiency
ratio over the five-year period of the bond, or an additional repayment of 0.5% of
the nominal issue amount will be triggered.
One source close to the deal said that the company’s story had “resounded well
with the capital markets.”
Its fleet, run by Contships Management, stands at 41 containerships, out of a total
59 the owner has acquired over the past decade in establishing itself as the largest
independent tonnage provider in the 900 teu-1,500 teu segment.
According to the prospectus for the issue, it currently has 61% charter coverage for
2025.
Clients include Mediterranean Shipping Company, CMA
CGM, Cosco, Maersk, Zim and others.
Founder and chief executive Nikolas Pateras said that the proceeds from the issue
would be used as “firepower to renew the fleet”.
The owner is understood to be sitting on liquidity of about $300m, once the bond
proceeds are added to past dividends.
However, he acknowledged that there is currently hot competition in the
secondhand market due to demand to secure feeder vessels.
Liner companies have been among the most determined buyers in the market for
secondhand feeders
annual interest rate of 9%, becoming the first private Greek shipowner to tap this
market.
The five-year, sustainability-linked bonds will be issued on February 11, at 98% of
the nominal amount.
Feeder containership owner Contships is the third-leading shipping company to
raise money from bonds in the Oslo market this month, following Scorpio
Tankers and John Fredriksen’s SFL Corp, which are both publicly listed tanker
owners.
The Nordic high-yield market appears to be continuing its momentum from last
year, which was a record one that saw 230 bond issues worth almost $20bn.
The shipping and transport sector was a significant component in this activity,
raising NOK34bn ($3bn).
Arctic Securities and Fearnley Securities are acting as joint bookrunners for the
issue, with Clarksons Securities earning a co-manager credit.
The terms include a sustainability target of a 2% reduction in the fleet’s efficiency
ratio over the five-year period of the bond, or an additional repayment of 0.5% of
the nominal issue amount will be triggered.
One source close to the deal said that the company’s story had “resounded well
with the capital markets.”
Its fleet, run by Contships Management, stands at 41 containerships, out of a total
59 the owner has acquired over the past decade in establishing itself as the largest
independent tonnage provider in the 900 teu-1,500 teu segment.
According to the prospectus for the issue, it currently has 61% charter coverage for
2025.
Clients include Mediterranean Shipping Company, CMA
CGM, Cosco, Maersk, Zim and others.
Founder and chief executive Nikolas Pateras said that the proceeds from the issue
would be used as “firepower to renew the fleet”.
The owner is understood to be sitting on liquidity of about $300m, once the bond
proceeds are added to past dividends.
However, he acknowledged that there is currently hot competition in the
secondhand market due to demand to secure feeder vessels.
Liner companies have been among the most determined buyers in the market for
secondhand feeders
Source: Lloyd’s List
