Contships Logistics, owned by Nikolas Pateras, has reaffirmed its momentum in international shipping financing, successfully completing a supplementary bond issue of 75 million dollars in the Nordic market.
It concerns the bond maturing in February 2030, bringing the total amount raised since the beginning of the year to 175 million dollars. The issue was carried out with a yield of 99% of the nominal value, clearly improved compared to the initial offering in January (98%).
This reflects the strong demand for Contships’ bonds, as well as the positive image the company has created among Scandinavian investors. As market sources commented, the initial target was to raise approximately 50 million, but oversubscription led to an increase of 50%.
Strategy
The proceeds from the issue will be used for general corporate purposes, including refinancing of the existing debt, as well as investments in shipping assets. The company has stated that its priority remains the renewal and gradual expansion of the fleet, through selective moves in the second-hand market, but also examining potential shipbuilding.
Contships recently looked into the intentions of major shipyards to build 20 feeder containerships with a capacity of 1,300 TEUs, with deliveries in 2028-2029. Although it did not proceed with placing orders due to the explosive increase in shipbuilding costs, the move shows its future aspirations. In fact, Nikolas Pateras’ attitude towards new orders – “not at any price” – is positively evaluated by investors, as it reinforces the image of responsible management.
According to statements by the Greek shipowner, the shipyards’ offers exceed 30 million dollars per unit, when the company believes that the cost should be up to 25 million dollars.
