Norwegian offshore wind shipping company Edda Wind is getting more backing from its big name investors to support fleet expansion.
The Oslo-listed company said it has put pen to paper at shipbuilder Vard for four new commissioning service operation vessels (CSOVs).
The first two will be delivered in the first quarter of 2025, the third in the second quarter and the last in the first three months of 2026.
Edda Wind is paying €63m ($67m) per ship and has secured options for up to four more.
These extra vessels will also be handed over in 2025 and 2026.
The whole series would amount to a spend of $536m.
“With delivery of these additional newbuilds, Edda Wind will become the leading offshore wind service vessel provider,” the company said.
Edda Wind was spun off from domestic offshore vessel owner Ostensjo Rederi and later carried out an IPO in Oslo with the backing of new shareholder Wilhelmsen Group.
These two groups have about 30% each.
Billionaires John Fredriksen and Idan Ofer also bought into the company, with stakes of around 12%.
Now all four groups are taking part in a private placement of shares intended to raise NOK 1.2bn ($115m).
Newbuilding finance nearly complete
Cash will fully finance the equity portion of the new ships, and will be used for general corporate purposes.
The price is NOK 25 per share, against a trading price of NOK 27 on Friday.
Ostensjo is buying NOK 120m of the issue and Wilhelmsen NOK 300m, while Fredriksen and Ofer will take NOK 275m each.
This would make Wilhelmsen the largest shareholder.
Financing for Edda Wind’s nine other newbuildings in Spain and Sri Lanka has been lined up at attractive terms, Edda Wind said.
This includes a green loan facility for four ships worth up to €120m.
The company said it is in advanced talks with an “industry major” over contracts for about 750 firm trading days in 2023 and 2024 at rates above historical levels and in the range forecast by analysts.