Thursday, September 28, 2023
HomeFinance & EconomyCPLP bond issue greeted with enthusiasm

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

CPLP bond issue greeted with enthusiasm

Bidding demand for the bond issue by Capital Product Partners LP (CPLP) is close to record level. The five-year senior unsecured bonds by the Nasdaq-listed shipping company owned by Vangelis Marinakis are aimed to draw 150 million euros at a range of 2.6%-3%.

The issue is addressed at the local capital market and private investors, and has already been oversubscribed, with estimates putting its coverage ratio at two or even three times the asking capital. Books opened on Monday and will close on Wednesday.

Issuer CPLP is implementing a significant investment program in six state-of-the-art liquefied natural gas (LNG) carriers. “This investment will allow us to play an important role in green development, as natural gas is expected play a key role in energy transition,” as CPLP chief executive officer Jerry Kalogiratos, tells Kathimerini.

“At the same time it will strengthen our fleet by reducing the environmental footprint of our fleet, given that these vessels use natural gas for their propulsion, resulting in the reduction of greenhouse gas emissions by 23%,” he adds.

“We completed the purchase of the first three ships in September with an investment of some $600 million, and we are now proceeding with the issue of a corporate bond up to €150 million, tradable in Athens Exchange, to partly finance the purchase of another LNG carriers,” notes Kalogiratos.

All six vessels are now among the most technologically developed the global fleet boasts, boasting long-term chartering agreements with major energy companies such as BP, Cheniere and Engie. The CPLP business model typically employs its ships in long-term deals securing steady cash flow that are not affected by chartering market fluctuations.

“After the acquisition, our fleet will number 21 ships, mainly LNG and container carriers, with contract revenues up to $2.1 billion and duration up to 7.9 years, offering our shareholders and creditors significant visibility in the corporation’s cash flows,” explains the CPLP CEO.

The company was founded by the broader Marinakis-owned shipping group and has been listed on Nasdaq since 2007. Kalogiratos also notes that the shipping firm “uninterruptedly pays dividend to its shareholders currently adding up to almost $800 million at the moment.”

“For the issue of the bond we have exclusively chosen the local capital market, giving the chance to the Greek investment public to participate in our investment plans, confirming our confidence in the growth momentum of the Greek economy,” says the CPLP manager.

Market sources note that “the decision of the Marinakis group to issue a bond in the Greek capital market bolsters the shipping bonds market in ATHEX and strengthens the ties of the Greek ocean-going shipping with the country.”

At the same time it also constitutes an attractive offer to the Greek investing public seeking reduced-risk returns in an international environment of low to zero interest rates.

Source: eKathimerini / By Ilias Bellos

Related Posts

Video

Finance & Economy
Shipping News
Ports

Star Bulk Announces the Repurchase of 10 Million of Its Common Shares

Star Bulk announced that it entered into a Repurchase Agreement (with OCM XL Holdings, LP, a limited partnership incorporated in the Cayman Islands, pursuant...

Trafigura announces executive leadership changes

Trafigura Group Pte Ltd. has announced an evolution of its executive team to further strengthen leadership and focus across its global activities during a...

Woori, HMM, KOBC to buy Polaris in prospective $448 mln deal – report

Polaris Shipping Co. is poised to sell its entire stake at around 600 billion won ($447.5 million) to Woori Private Equity Asset Management Co....

Pyxis Tankers Announces Closing of Ultramax JV Investment

Pyxis Tankers, an international shipping company, reported that on September 14, 2023, the Company closed on its previously announced newly formed drybulk joint venture...

Korea’s STX denies rumor that it is backed by Chinese fund

South Korean general trading company STX Corp. has said its largest shareholder is a local investment firm, while refuting the false reports appearing through...

Baltic index scales 11-month peak on strong capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index scales over 9-month high on capesize surge

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index rises to over 4-month high on stronger capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Houston-Japan VLGC freight rates reach multi-year high

VLGC freight rates from Houston to Chiba, Japan, reached $245/mt Sept. 21 for the...

Baltic index snaps 11-session rally as rates for larger vessels ease

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Drewry: Port Throughput Index Down 2.1% in July

The Global Container Port Throughput Index fell 2.1% MoM in July 2023, with the small rises recorded in Africa and Oceania having been insufficient...

Vopak: Agreement with Infracapital on sale of Rotterdam chemical terminals

Vopak announces that it has reached an agreement with Infracapital on the sale of its three chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven)...

Port Hedland Iron Ore Exports Edge Up 4% in August

Pilbara Ports Authority has delivered a total monthly throughput of 62.8 million tonnes (Mt) for August 2023, consistent with the August 2022 throughput. The Port...

Thessaloniki, Gdańsk ports to explore synergies

Thessaloniki Port Authority S.A is expanding its role as a port of international importance through a new cooperation with the Port of Gdańsk Authority...

Hapag-Lloyd CEO: Counteroffer for HHLA would not be in our interest

Hapag-Lloyd CEO Rolf Habben Jansen said on Thursday that it would not be in the container shipper’s interest to make an offer for HHLA...