Norwegian cruise ferry owner Hurtigruten Group is targeting a big investment in emissions reductions through a new green bond.
The Oslo-listed company has asked investment banks Danske Bank and DNB Markets to act as joint bookrunners and arrange a series of fixed-income investor meetings from Wednesday.
The aim is to place a bond of up to €25m ($26.7m) maturing in February 2025.
Net proceeds will be used as part of Hurtigruten’s green bond framework to fund environmental upgrade projects that will reduce CO2 emissions by up to 25% and NOX output by as much as 80%.
Alongside the debt sale, the company’s owner, TDR Capital, will inject another €25m into the company.
TDR bought a majority holding in the shipping company in 2014.
Last month, TradeWinds reported that Hurtigruten has embraced local maritime unions’ demands for Norwegian salary levels, and terms and conditions for vessels operating in its waters.
But Hurtigruten has gone further, adding that the terms should apply to international vessels calling at more than one Norwegian port, for example, cruise ships visiting the scenic fjords.
In contrast to P&O Ferries
Its views are in stark contrast to P&O Ferries, which recently sacked 800 British seafarers to cut costs, claiming it had no alternative.
At present, Hurtigruten has six expedition ships operating internationally.
All of these operate under the Norwegian International Ship Register or NIS, largely on international terms and conditions.
It also has seven ferries operating along the Norwegian coast under the domestic Norwegian Ordinary Ship Register (NOR) flag, with Norwegian terms and conditions.
The operations are run as two separate companies.
Hurtigruten said if the government proposes, as expected, that Norwegian wages and terms should apply in Norwegian waters, then the NIS-flagged vessels will also be brought into line with Norwegian norms.
