Norway’s Klaveness Combination Carriers (KCC) is assessing the appetite for a sustainability-linked bond issue.
The Oslo-listed owner of vessels that carry both wet and dry cargoes said on Friday it has tasked Danske Bank, Nordea, Pareto Securities and SEB to arrange a series of fixed-income investor meetings starting on Monday.
Subject to market conditions, a Norwegian bond could be sold that matures over five years, with the coupon linked to the company’s environmental performance.
KCC said it will consider a buyback of its KCC04 bond with the cash.
This NOK 700m ($65m) series matures in February 2025, and carries interest at the Norwegian interbank offered rate (Nibor) plus 4.75%.
Proceeds from any bond sale will also go towards general corporate purposes, the company said.
KCC said on Thursday it made a $16.5m net profit for the three months ending on 30 June, up from $16.2m for the same period last year, as revenue rose to $44.5m from $41.3m.
DNB Markets analyst Jorgen Lian said there were no surprises in the company’s earnings, but did note the profit figure was 9% below the $18.1m consensus.
He sees downside risk in the third quarter, with the company expecting third-quarter rates for its Cabu caustic soda ships to come in at between $33,500 per day and $34,500 per day, and its Cleanbu oil product vessels at between $26,000 per day and $28,000 per day.
Lian said those figures suggest lower Ebitda for the third quarter and full year 2023.
