SFL Corp has managed to raise $150m from selling what are known to be the shipowner’s first sustainability-linked bonds.
The New York-listed company said it successfully placed $150m in the five-year, senior unsecure bonds on Thursday.
“Net proceeds will be used to refinance existing bonds and for general corporate purposes,” SFL said in a statement.
The company, which operates from Oslo, appointed DNB Markets, Arctic Securities and Pareto Securities as joint bookrunners.
DNB Markets, the investment banking arm of Norway's DNB, also acted as the sustainability structuring advisor for the issue.
SMBC Nikko Capital Markets was appointed as co-manager in the bond placement.
SFL said it will apply to list the bonds on the Oslo Stock Exchange.
No further details on the issue have been disclosed.
TradeWinds reported earlier that the John Fredriksen-backed owner planned to raise somewhere between $115m and $150m via sustainability-linked bond sales.
Those bonds generally follow the principles published by the International Capital Market Association, and issuers’ financing costs are linked to their performances on environmental, social and governance (ESG) matters.
A small, but growing number of shipowners have tapped into ESG financing following strong fund inflows in recent quarters.
SFL has promised to establish specific targets for several United Nations Sustainable Development Goals and develop its decarbonisation strategy within this year.
On Wednesday, the company said it would build two LNG-fuelled car carriers on the back of long-term charters to an unnamed European automobile manufacturer.
Shipbuilding sources said SFL has shortlisted a few shipyards for the project and it should soon reach a decision on who will construct them.
SFL chief executive Ole Hjertaker said the deal shows his company’s commitment to invest in assets with a lower carbon footprint.
“Over the last 10 years, SFL’s fleet has transitioned from predominately oil production and transport assets, to mainly consisting of containerships and dry bulk vessels today,” Hjertaker said.
The company owns a diverse fleet of three offshore drilling units, nine tankers, 22 bulkers, and 50 car carriers and boxships on long-term charters to various operators.
