Container leasing giant Seaspan Corp is the latest shipowner to be tempted by a sustainability-linked bond (SLB) issuance.
The subsidiary of US-listed Atlas Corp has mandated DNB Markets and Fearnley Securities to arrange a series of fixed-income investor meetings later today.
The Bing Cheng-led company said subject to inter alia market conditions, a US dollar denominated senior unsecured SLB issue with a three-year tenor may follow.
Seaspan said the net proceeds from the potential bond issue will be used for general corporate purposes, which may include repayment of debt.
The size of the potential bond issue was not disclosed, nor was the coupon or the likely timetable for the company’s latest fund raiser.
In October, Seaspan Corp claimed to have undertaken the first sustainability-linked financing in the containership leasing space.
It closed a sustainability-linked loan (SLL), consisting of a $200m term loan with a tenor of six years, with the proceeds helping to pay down an existing revolving credit facility, bolstering liquidity and fund growth opportunities.
In mid-December, Seaspan raised a further $201.25m after it closed an offering of 3.75% exchangeable senior notes due 2025 in a private placement.
Seaspan returned to the newbuilding market with an order for five 12,200-teu neopanamax containerships on the back of an 18-year time charter to an unnamed liner company.
Its fleet comprises 127 containerships with a total capacity of just over 1m-teu with an average age of about seven years.
On Thursday, Oslo-listed Odfjell became the first shipping company to sell an SLB in a NOK 850m ($100m) deal.
SLBs are said to be different to green bonds, which have to be used to finance specific eco-projects.
Odfjell chief financial officer Terje Iversen told TradeWinds that SLBs have no restrictions or limitations on what the money is used for.
"With green bonds, it's difficult to know what funds are funding what. You have to demonstrate that that dollar is used for a green purpose," he said.
